Find accurate and reliable answers to your questions on IDNLearn.com. Our community provides accurate and timely answers to help you understand and solve any issue.

On April 1, Garcia Publishing Company received $28,980 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year

Sagot :

The adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year is: Debit Unearned Fees, $7,245; credit Fees Earned, $7,245.

Adjusting journal entry

Based on the information given the appropriate adjusting journal entry to record the transaction will be:

Garcia Publishing Company adjusting journal entry

Debit Unearned Fees $7,245

Credit Fees Earned, $7,245

($28,980×9/36)

April 1 -December 31=9 months

Inconclusion the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year is: Debit Unearned Fees, $7,245; credit Fees Earned, $7,245.

Learn more about journal entry here:https://brainly.com/question/14279491