On April 1, Gimit Publishing Company received 533,480 from Santa Fe, Inc. for 36-month subscriptions to...

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Answer 1

Answer #1

ANSWER : debit Unearned Fees, $8,370 , credit Fees Earned $8,370

because subscription for 36 months are received but earned for only 9 months ,that is , from April 1 to December 31 of the first year .

Therefore , if subscription for 36 months amounts to $33,480 then subscription for 9 months will be $[(33,480/36)*9] = $8,370 .

Answer 2

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