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Complete the paragraph to explain why unearned revenues are liabilities instead of revenues. In the explanation, use the following actual example: The New York Times, a national newspaper, collects cash from subscribers in advance and later provides news content via print newspapers and online access to subscribers over a one-year period. Explain what happens to the unearned revenue over the course of a year as The New York Times delivers papers and online content to subscribers. Into what account does the earned subscription revenue go as The New York Times delivers papers and online content? Give the journal entries that The New York Times would make to (a) collect $55,000 of subscription revenue in advance and (b) record earning $45,000 of subscription revenue. Include an explanation for each entry. Explain what happens to the unearned revenue over the course of a year as The New York Times delivers papers and online content to subscribers. Unearned revenues are liabilities because The New York Times has subscribers providing them with newspapers and online access. established an accounts payable for the received cash from Unearned revenues are liabilities because The New York Times has subscribers providing them with newspapers and online access. after before

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