Question

Bonita newspapers sold 6900 of annual subscriptions at $150 each on june 1. how much unearned revenue will exist as of december 31?

Answer 1

The unearned revenue that exists as of December 31 is $431,250

What is unearned revenue?

Unearned revenue is the cash received from customers that commensurate services relating to the cash payment has not been provided, in this case, the subscriptions starts June 1 and would end 31 May of the next year, which means at the end of the year, the unearned revenue would relate to only the 5 months of the next year , precisely January to May.

Total annual subscription revenue=number of subscriptions*price per unit

number of subscriptions=6,900

price per unit=$150

total annual subscription revenue=6,900*$150

total annual subscription revenue=$1,035,000

unearned revenue for the remaining 5 months=5/12*$1,035,000

unearned revenue for the remaining 5 months=$431,250

Find out more about unearned revenue on:brainly.com/question/14229467

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