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2. Chapter 10 Flores Company publishes a monthly sports magazine, Hunting Preview. Subscriptions to the magazine cost $\$ 20$ per year. During October 2019. Flores sells 24,000 subscriptions beginning with the November issue. Flores prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. Flores Company financial statements contained the following data (in millions). $\begin{array}{lcll}\text { Current assets } & \$ 20,890 & \text { Accounts receivable } & \$ 1,550 \\ \text { Total assets } & 42,430 & \text { Interest expense } & 980 \\ \text { Current liabilities } & 15,160 & \text { Income tax expense } & 1,270 \\ \text { Total liabilities } & 32,580 & \text { Net income } & 2,230 \\ \text { Cash } & 380 & & \end{array}$ Instructions a) Prepare the entry in October for the receipt of the subscriptions. b) Prepare the adjusting entry at December 31,2019 , to record subscription revenue earned in December 2019. c) Prepare the adjusting entry at March 31, 2020, to record subscription revenue earned in the first quarter of 2020. d) Working capital. e) Current ratio

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