Question

You sell subscriptions to your magazine on a yearly basis for the fee of $42/year. Issues come out each month on the 15th of
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Unearned revenue means it is advance revenue received from client for the next accounting period before providing services or goods to the client.It is a current a liability.

The mentioned question that  subscription for magazine is taken in January and accounting year is ending on April 30.

So, The balance of unearned revenue subscription revenue account for customer

= $42*8/12

= $28

So, The balance of unearned revenue subscription revenue account for customer is $28

and option(3) is a correct answer

Add a comment
Know the answer?
Add Answer to:
You sell subscriptions to your magazine on a yearly basis for the fee of $42/year. Issues...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • S3-3 Applying the revenue recognition principle Seacoast Magazine sells subscriptions for $36 for 18 issues. The...

    S3-3 Applying the revenue recognition principle Seacoast Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Apply the revenue recognition principle to determine a. when Seacoast Magazine should record revenue for this situation. b. the amount of revenue Seacoast Magazine should record for eight issues. S3-4 Applying the matching principle Suppose on January 1, Andrew's Tavern prepaid rent of $16,800 for the full year. At...

  • Account Analysis Question 3 (please show your calculation for each part): On November 1, Cosmetics Magazine...

    Account Analysis Question 3 (please show your calculation for each part): On November 1, Cosmetics Magazine started publishing a monthly magazine for which a one year subscription costs customers $24. All subscriptions require payment of the full $24 (in cash) in advance. During the month of November, the company sold 150 one-year subscriptions, and during the month of December, the company sold 400 one-year subscriptions. The company allocates the revenue evenly (i.e., such that $2.00 in revenue is allocated to...

  • On November 1, George prepaid for one year of insurance for $1,200. Record the following journal...

    On November 1, George prepaid for one year of insurance for $1,200. Record the following journal entries. Accounts used Cash, Prepaid Insurance, Insurance Expense. The prepayment on November 1. journal entry Accounts Debit Credit The adjustment for used insurance at December 31 (2 months). journal entry The adjustment for used insurance at December 31 (2 months). journal entry Accounts Debit Credit On October 1, Sponge Bob, Inc. received $240 up front from a customer for a yearly magazine subscription. Magazines...

  • Question: A company regularly purchases materials from a manufacturer on credit. Payments for these purchas... A company...

    Question: A company regularly purchases materials from a manufacturer on credit. Payments for these purchas... A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within the company’s operating cycle. They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does this best describe? sales tax payable accounts payable unearned revenue income taxes payable A ski company takes out a $400,000 loan from...

  • A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within...

    A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within the company’s operating cycle. They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does this best describe? sales tax payable accounts payable unearned revenue income taxes payable A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually....

  • can anyone help me to ans 27 26 25 . plz and thank you very much...

    can anyone help me to ans 27 26 25 . plz and thank you very much !!! if it is unclear for you to view plz right click the mouse and view it in a new tab, then it shows clean images. thank you and plz someone to answer these for me. Question 27 Not yet answered 6 7 Marked out of 23.00 12 13 14 Flag question 19 20 21 Presented below is information related to Victor Company at...

  • Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...

    Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,690 for six months of advertising. Johnny Flowers Law Firm recorded $2,690 in the Prepaid Advertising account. Accrual basis/Cash basis If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they...

  • J e received P 1.200,000 from its students for the spring semester that recorded in Uncanned...

    J e received P 1.200,000 from its students for the spring semester that recorded in Uncanned buition and Fees The term spans four months beginning on January 2 and the college spread the revenue evenly over the months of the term Asuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? AP 300,000 BP 600,000 C.P 800,000 D.P 900,000 E.P 1.200.000 15. Unpaid water bill was not recorded. Which of the following...

  • Newman Consulting Company maintains its records on a cash basis. During 2021 the following cash flows...

    Newman Consulting Company maintains its records on a cash basis. During 2021 the following cash flows wete recorded: cash received for services rendered to clients, $440,000; and cash paid for salaries, utilities, and advertising, $250,000 $37.000, and $14,000, respectively. You also determine that customers owed the company $56,000 and $62,000 at the beginning and end of the year, respectively, and that the company owed the utility company $5.000 and $3,000 at the beginning and end of the year, respectively Complete...

  • I. The Rau Co. closes its books once a year on Dec. 31. Required: (a) Make...

    I. The Rau Co. closes its books once a year on Dec. 31. Required: (a) Make the necessary Dec. 31, 2000, adjusting entry for each of the following: (1) On Aug. 1, 2000, Rau received $2,800 in advance for seven months of consulting work. An income statement account was credited on Aug. 1st (2) On March 1, 2000, Rau paid $7,200 in advance for one year's rent. A balance sheet account was debited on March 1 st (3) On Nov....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT