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storchak [24]
3 years ago
10

On September 1, 2011, Cooking with Tarla sold 600 one-year magazine subscriptions for $81 each. Subscriptions start immediately.

The total amount received was recorded as Unearned Subscriptions Revenue. Which of the following accounts and amounts will appear on the unadjustedtrial balance at December 31, 2008? A) Unearned Subscriptions Revenue, $48,600 credit balance B) Subscriptions Revenue, $16,200 credit balance C) Unearned Suscriptions Revenue, $16,200 credit balance D) Suscriptions Revenue, $32,400 debit balance E) None of the above
Business
1 answer:
Yuki888 [10]3 years ago
5 0




Revenue is recorded for September, October, November and December of $4,050 each month for a total of $16,200 in the calendar year of 2011, which leaves an Unearned Subscription Revenue Liability on the balance sheet on 12/31/2011 of $32,400.

So revenue earned is a credit balance of $16,200, which is B.
The remaining liability (credit) balance in Unearned
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