Healthy Living,a Diet Magazine,collected $240,000 in Subscription Revenue on May

question 29

Multiple Choice

Healthy Living,a diet magazine,collected $240,000 in subscription revenue on May 31.Each subscriber will receive an issue of the magazine in each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.What is the amount of Subscription Revenue that has been earned by the end of December? (Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number. )

• A)$100,000
• B)$180,000
• C)$240,000
• D)$140,000

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Definitions:

Saving Account

A savings account in a banking institution that guarantees the safety of the deposited money while offering a low interest rate.

Annual Interest Rate

The percentage of interest that will be charged or earned on an amount of money over the span of a year.

Deposit

Money placed into a financial institution for safekeeping, which can also earn interest depending on the type of account.

Semiannually Compounded Rate

An interest rate that is compounded twice a year, affecting the total amount of interest earned or paid.