Winston Company Sells Magazine Subscriptions for One- to Three-Year Subscription

question 60

Multiple Choice

Winston Company sells magazine subscriptions for one- to three-year subscription periods. Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance, and this account had a balance of $9,600,000 at December 31, 2011, before year-end adjustment. Outstanding subscriptions at December 31, 2011, expire as follows:

In its December 31, 2011, balance sheet, what amount should Winston report as the balance for magazine subscriptions collected in advance?

• A) $2,000,000
• B) $3,800,000
• C) $7,600,000
• D) $9,600,000

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Definitions:

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An opportunity usually provided to students or newcomers in a profession to gain practical experience and training in their field of study or interest.

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