Real Losers,a Diet Magazine,collected $360,000 in Subscription Revenue in May

question 56

Multiple Choice

Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.
-Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.What is the balance in the Unearned revenue account at the end of December?

• A) $150,000
• B) $330,000
• C) $360,000
• D) $0

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Definitions:

W-3 Form

An IRS tax form used in the United States to transmit a summary of all W-2 forms issued by an employer to the Social Security Administration.

FICA-OASDI

The portion of Social Security tax collected under the Federal Insurance Contributions Act, dedicated to funding the Old Age, Survivors, and Disability Insurance program.

Employees' Contribution

The portion of earnings that workers contribute to designated plans, such as retirement savings or health insurance.

Retirement Fund

A savings account specifically set aside for the purpose of retirement income.