A Company Has Advance Subscription Sales Totaling $45,000 for Four

question 161

Multiple Choice

A company has advance subscription sales totaling $45,000 for four quarterly journals that will mailed to customers in the upcoming year. When the company mails the first quarterly journal to customers, it should record:

• A)Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750.
• B)Debit Unearned Revenue $45,000; credit Cash $45,000.
• C)Debit Cash $11,250, credit Sales $11,250.
• D)Debit Unearned Revenue $11,250, credit Sales $11,250.
• E)Debit Prepaid Subscriptions $11,250, credit Sales $11,250.

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake, finding it internally rewarding rather than for some external reward.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, and praise.

Rewards

Positive reinforcements or outcomes that enhance the likelihood of repeating a behavior or action.

Emotion Experience

The process of consciously feeling or perceiving emotions, which involves both physiological arousal and cognitive appraisal.