4) On September 1, 2018, Fortune Magazine sold 600 one-year subscriptions for $8

Question

4) On September 1, 2018, Fortune Magazine sold 600 one-year subscriptions for $81 each total amount received was credited to deferred subscriptions revenue. What is the required justing entry at December 31, 2018? A) 48.60 eferred subscri Subscriptions revenue Prepaid subscriptions B) 16,20 eterred subscriptions revenue Subscriptions revenue 16.200 C) Deferred subscriptions revenue 16,20 16,20 Subscriptions payable D) Deferred subscriptions revenue 32,400 32,400 Subscriptions revenue by the Lessor and Lessee leased an apartment, you know that a lease is a contractual arrangement (owner) provides a lessee (user) the right to use an asset for a specified An apartment lease return for this right, the lessee agrees to make periodic cash payments typical rental agrees the lease. An apartment lease is a typical rental agreement in which referred to as an op ts and responsibilities of ownership are retained by the lessor; the les- asset temporarily. Businesses, too, lease assets under similar arrange rred to as operating leases. Many contracts, though, are formulated ut in reality are installment purchases/sales. These are called finance d sales-type leases by the lessor. Illustration 15-1 compares the clas PAR lease. ustration 15- Lessor nce lease

Explanation / Answer

ans) option ( b)

sep 1 Cash ( 600 X 81) 48600

Deffered subscription revenue 48600

Amount earned $48600 X 4 /12 = 16200

Deffered subscription revenue 16200

subscription revenue 16200

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.