E10-6 Determining and Recording the Financial Statement Effects of Deferred Subscription Revenue [LO2] Reader's Digest Association is a publisher of magazines, books, and music collections. The following note is from a recent annual report: Revenues Sales of our magazine subscriptions are deferred (as Deferred revenue) and recognized as revenues proportionately over the subscription period. Tsigareve de fevered bs as peferred Assume that Reader's Digest (a) collected $412 million in 2016 for magazines that will be delivered later in 2016 and 2017, and (b) delivered $208 million worth of magazines on these subscriptions in 2016. Required: 1. Using the information given, indicate the effects (accounts and amounts) of the transactions involving $412 million and $208 million, on the accounting equation. (Enter your answers in whole dollars. Enter any decreases to accounts with a minus sign.) Transaction Assets Liabilities Shareholders' Equity Cash Sn 412: (b) 2. Using the information given, prepare the journal entries that would be recorded in 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the collection of $412 million for magazines subscriptions. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Record entry Clear entry View general journal View transaction list Journal entry worksheet