Madson Company Typically Sells Subscriptions on an Annual Basis and Publishes

question 111

Multiple Choice

Madson Company typically sells subscriptions on an annual basis and publishes six times a year.The magazine sells 90000 subscriptions in January at $10 each.Recording the sale of the subscriptions involves a(n)

• A)Increase to Subscriptions Receivable and an increase to Subscription Revenue for $900000.
• B)Increase to Cash and an increase to Unearned Subscription Revenue for $ 900000.
• C)Increase to Subscriptions Receivable and an increase to Unearned Subscription Revenue for $150000.
• D)Increase to Prepaid Subscriptions and a decrease to Cash for $900000.

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