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Archy [21]
4 years ago
14

Healthy​ Living, a diet​ magazine, collected $ 240,000 in subscription revenue on June 30. Each subscriber will receive an issue

of the magazine in each of the next 12​ months, beginning with the July issue. The company uses the accrual method of accounting. What is the amount of Subscription Revenue that has been earned by the end of​ December? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​ number.)
Business
1 answer:
PilotLPTM [1.2K]4 years ago
4 0

Answer: $120,000

Explanation:

Given that,

On June 30,

Subscription revenue collected = $240,000

Each subscriber will receive = magazine in each of the next 12​ months

No. of months from July to December = 6

Here, company is using accrual method of accounting,

Amount of Subscription Revenue that has been earned by the end of December:

=\frac{Subscription\ Revenue}{12}\times No. of months

=\frac{240,000}{12}\times6

= $120,000

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<u>Double check: </u>

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4 years ago
Stanley deposits $1,000 into a savings account that pays 1% interest per year. At the end of the first year, he's earned $10 in
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Answer:

$1000

$1010

Explanation:

The formula for determining simple interest = principal x time x interest rate

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compound interest in year 2 = 20.1 - 10 = 10.1

or

1010 x 0.01 x 1 = 10.1

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