Get in Shape,a Healthy Living Magazine,collected $528,000 in Subscription Revenue

question 174

Multiple Choice

Get in Shape,a healthy living magazine,collected $528,000 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 balance in the Unearned Revenue account as of December 31?

• A)$220,000
• B)$308,000
• C)$528,000
• D)$396,000

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Definitions:

Price Rises

An increase in the cost of goods or services, often due to factors such as inflation, increased production costs, or higher demand.

Existing Producers

Companies or individuals that are currently producing and selling goods or services within a market.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a good or service and the actual amount they end up paying.

Price Falls

Situations where the market prices of goods or services decrease over time.