A company pays $360 for a yearly trade magazine on August 1. The adjusting entry on December 31 is debit Unearned Subscription Revenue, $150 and credit Subscription Revenue, $150.

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The adjusting entry on December 31 should be a debit to Subscription Revenue for $150 and a credit to Unearned Subscription Revenue for $150. This is because $150 worth of the subscription has been earned from August 1 to December 31, leaving $210 ($360 - $150) of unearned revenue for the remaining subscription period.

A Company Pays $360 for a Yearly Trade Magazine on August