Monthly Foodies’ Magazine’s ledger includes the following accounts: Subscription Revenue, Unearned Subscriptions Revenue, Prepaid Insurance, Insurance Expense, Prepaid Rent and Rent Expense.
The following transactions relating to subscriptions, insurance and rent occurred on the dates indicated. Ignore GST.
Subscriptions
1 July 2016. The Unearned Subscriptions Revenue account contained a credit balance of $77 500. Of this balance, $21 900 is for subscriptions expiring at the end of October and $55 600 is for subscriptions expiring at the end of February.
1 November 2016. Monthly Foodies’ Magazine received $14 800 for subscriptions lasting 6 months.
1 March 2017. Monthly Foodies’ Magazine received $34 200 for subscriptions lasting 12 months.
1 May 2017. Monthly Foodies’ Magazine received $16 500 for subscriptions lasting 6 months.
Insurance
1 July 2016. The Prepaid Insurance account contained a debit balance of $11 970 for a policy that ends on 31 March.
15 September 2016. Monthly Foodies’ Magazine paid $27 120 for a 12-month policy beginning coverage on 15 September.
Rent
1 July 2016. The Prepaid Rent account contained a debit balance of $12 995 for the period July to November inclusive.
1 December 2016. Monthly Foodies’ Magazine paid $24 030 for 9 months’ rent.
Required
For each of the situations listed, enter the beginning balance in the proper ledger account and post the transactions directly to the accounts listed. Then record the necessary adjusting entry at 30 June 2017, the end of the financial year.
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