Ask Question
20 December, 06:17

Vista newspapers sold 6,000 of annual subscriptions at $125 each on September 1.

How much unearned revenue will exist as of December 31?

a. $0.

b. $500,000.

c. $250,000.

d. $750,000.

+4
Answers (1)
  1. 20 December, 08:24
    0
    Option (B) is correct.

    Explanation:

    Annual Subscription:

    = 6000 * $125

    = $750,000

    Since, the payment was received for 1 Year, we will recognize 4 months revenue (1 September till 31st December) in the given year:

    = $750,000 * (4/12)

    = $250,000

    Unearned Revenue as on 31st December:

    = Total Payment Received - Revenue Recognized for 4 months

    = $750,000 - $250,000

    = $500,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Vista newspapers sold 6,000 of annual subscriptions at $125 each on September 1. How much unearned revenue will exist as of December 31? a. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers