On April 1, Griffith Publishing Company Received $1,548 from Santa

question 139

Multiple Choice

On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately.
-What is the amount of revenue that should be recorded by Griffith Publishing Company for the second year of the subscription assuming the company uses a calendar-year reporting period?

• A) $129.
• B) $430.
• C) $516.
• D) $387.
• E) $0.

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Definitions:

Investment

The act of allocating funds into ventures with the intention of gaining financial returns or tangible outcomes.

Compounded Quarterly

Interest on an investment or loan that is calculated four times a year, adding each interest payment to the principal for future interest calculations.

Maturity Value

The amount payable to an investor at the end of a fixed-term investment including the principal and the interest.

Compounded Annually

Compounding annually is a method where interest is added to the principal sum at the end of each year, impacting the total interest earned or paid.