On April 1, Santa Fe, Inc

question 8

Multiple Choice

On April 1, Santa Fe, Inc. paid Griffith Publishing Company $1,548 for 36-month subscriptions to several different magazines. Santa Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately.
-What adjusting entry should be made by Santa Fe, Inc. for the adjustment on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustments had been made?

• A) Debit Subscription Expense $516 and credit Prepaid Subscriptions $516.
• B) Debit Unearned Subscriptions $387 and credit Subscription Expense $387.
• C) Debit Subscription Expense $387 and credit Cash $387.
• D) Debit Prepaid Subscriptions $516 and credit Subscription Expense $516.
• E) Debit Subscription Expense $387 and credit Prepaid Subscriptions $387.

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Surface

The outer or topmost boundary of an object, which can be perceived directly or interacted with.

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A French philosopher best known for developing deconstruction, a critical approach that explores the complexities and instabilities in texts, language, and meaning.

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Fundamental principles or theories that serve as the foundation for a wider set of observations or phenomena within a field of study.

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An American literary critic and theorist known for his analysis of contemporary cultural trends, particularly his work on the complexities of postmodernity.