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In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who paid $570 in cash. What would be the appropriate journal entry for this event in December 2020?

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jafransp

Answer:

See explanation section

Explanation:

December 2020  Cash           Debit          $570

                             Unearned revenue   Credit        $570

Since Quebecor Printing received cash, cash account is debit with the same amount of money they received. Again, as customers paid in advance, it is a liability for the company. Moreover it is an advanced revenue, so "unearned revenue" is a credit.

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