Answer:
Dr cash $ 287,040
Cr unearned revenue $ 287,040
Dr unearned revenue $119,600
Cr earned revenue $119,600
Explanation:
The Magazine received the subscriptions in advance prior to delivering the published magazine to its readers, as a result, the subscriptions would be treated as unearned revenue until the magazines are delivered, when each month revenue would be recognized.
Amount received=$23*12480=$287,040
On 31 December 2020,5 months publications would have been delivered and should now be shown as revenue earned
5-month subscription=$287,040*5/12=$119600
