On september 1, 2018, fortune magazine sold 600 one-year subscriptions for $81 each. the total amount received was credited to deferred subscriptions revenue. what is the required adjusting entry at december 31, 2018?
The required adjusting entry will be; Debit unearned revenue for 16,200 and Credit revenue for 16,200. An unearned or deferred revenue is classified as profit but it is listed on the liability on the balance sheet until it has been delivered or has been performed the services.
