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

question 15

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 31,2013,before year-end adjustment.Outstanding subscriptions at December 31,2013,expire as follows:

In its December 31,2013,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:

Slaves and Slavery

The forced bondage and labor of people, where individuals are owned by others, a practice historically found in various cultures and societies around the world.

1770s and 1780s

The decades marking the American Revolutionary War and the formative years of the United States, leading to the adoption of the Constitution.

Loyalists

Individuals who remain loyal to the established government or ruling authority, especially during times of revolt or revolution.