problem: Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay 50 dollar in advance for a one year subscription. In the month of September 2009, Evans Ltd. sold 200 one year subscriptions & received payments in advance from all new subscribers. Only 120 of the new subscribers paid their fee in time to receive the September newsletter; the other subscriptions began with the October newsletter.
[A] Make journal entries to record the effects of the following items: [a] subscription fees received in advance during September 2009. [b] Subscription revenue earned during September 2009.
[B] Compute the amount of subscription revenue earned by Evans Ltd. in the year ended December 31, 2009, for these two hundred subscriptions.