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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