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

Question

3 years ago

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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] · Answer 1 · 2021-12-19T08:41:03+03:00

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

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

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