Big Wheel Times collects cash from subscribers in advance and then mails the rollerblading magazines to subscribers over a one-year period.

1. Record the journal entry to record the receipt of cash for $135,700 received January 1.
2. Record the adjusting entry Big Wheel Times makes to record the earning of $10,800 January 31 for subscription revenue collected in advance.

Journal

Date	Description	Debit	Credit
January 1	Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue
January 1	Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue
January 31	Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue
January 31	Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue