On october 1, 2019, paige turner publishing received $60,600 in cash for subscriptions covering one year, recording the entry as a debit to cash and a credit to unearned subscriptions. the correct adjusting entry at december 31, 2019, is

-debit unearned subscriptions $5,050; credit subscriptions income $5,050.

-debit unearned subscriptions $15,150; credit subscriptions income $15,150.

-debit unearned subscriptions $60,600; credit subscriptions income $60,600

-debit subscriptions income $15,150; credit unearned subscriptions $15,150.

Debit Unearned Subscriptions $15,150;

credit Subscriptions Income $15,150.

Explanation:

Given,

Unearned subscription = $60,600 for 1 year or 12 months

Monthly subscription income = $60,600 ÷ 12

Monthly subscription income = $5,050

Since the company received cash in advance on October 1, 2019, and the financial year closes at December 31, 2019. Therefore, Paige Turner has earned 3 months (October, November, and December) subscription income.

Therefore, subscription income for the three months = $5,050 × 3 = $15,150.

As the liability becomes expired and turns into an income, therefore, liability decreases, and income increases.

Liability decreases = Debit (Unearned Subscription) $15,150

Income increases = Credit (Subscription income) $15,150

the answer is b. the events might happen and are based on crimes.