Golf World Publications publishes golf magazine for women. Magazine sells for $3 a copy on newsstand. Yearly subscriptions to magazine cost $24 per year (12 issues). In December 2008, Golf World Publications sells 9,000 copies of golf magazine at newsstands and receives payment for 15,000 subscriptions for 2009. Financial statements are created monthly.
Instructions
(a) Create December 2008 journal entries to record newsstand sales and subscriptions received.
(b) Create essential adjusting entry on January 31, 2009. January 2009 issue has been mailed to subscribers.