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Yummy publishes magazines geared toward cooking enthusiasts. The company sells year-long subscriptions to its customers....

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Accounting

Yummy publishes magazines geared toward cooking enthusiasts. The company sells year-long subscriptions to its customers. At the beginning of January, the company sold $78,000 in yearly subscriptions. The customers receive one magazine on the 15th of each month. The company records adjusting entries semiannually on June 30 and December 31. Which of the following journal entries would the company record on June 30 to recognize the revenue earned?
a. Debit Unearned Subscription Revenue for $32,500 and credit Subscription Revenue for $32,500
b. Debit Cash for $78,000 and credit Subscription Revenue for $78,000
c. Debit Unearned Subscription Revenue for $39,000 and credit Subscription Revenue for $39,000
d. Debit Unearned Subscription Revenue for $6,500 and credit Subscription Revenue for $6,500

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