Sheridan Company Ltd. publishes a monthly sports magazine called Fishing Preview, with annual subscriptions priced at $15. In November 2022, 12,880 subscriptions were sold, and the company recognizes revenue quarterly, adjusting subscription revenue at year-end on December 31. A tabular summary must be prepared to record the subscription receipts and revenue adjustments for December 2022.

1. Sheridan Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to
the magazine cost $15 per year. During November 2022, Sheridan sells 12,880 subscriptions for
cash, beginning with the December issue. Sheridan prepares financial statements quarterly and
recognizes subscription revenue at the end of the quarter. The company uses the accounts
Unearned Subscription Revenue and Subscription Revenue. The company has a December 31
year-end. Prepare a tabular summary to record the following events. (a) Receipt of the
subscriptions in November. (b) Adjustment at December 31, 2022, to record subscription revenue
in December 2022. Include margin explanations for the changes in revenues and expenses. (if a
transaction couses a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign
(or porentheses) in front of the amount entered for the porticular Asset, Liability or Equity item that
was reduced.)