Barker, Inc

question 42

Multiple Choice

Barker, Inc. receives subscription payments for annual (one year) subscriptions to its magazine. Payments are recorded as revenue when received. Amounts received but unearned at the end of each of the last three years are shown below.

Barker failed to record the unearned revenues in each of the three years. The entry needed to correct the above errors is

• A) Retained Earnings .................. 150,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 176,000
• B) Retained Earnings .................. 30,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 56,000
• C) Subscription Revenues .............. 176,000 Unearned Revenues ............... 176,000
• D) Subscription Revenues .............. 150,000 Retained Earnings .................. 26,000 Unearned Revenues ............... 176,000

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Definitions:

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Capital Gain Distributions

Payments to shareholders or fund investors from the sale of securities within the portfolio that have appreciated in value.

Income Distributions

Payments made from a fund or an entity to its shareholders, often derived from interest or dividend income.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to price each share of a mutual fund or ETF.