On April 1,Griffith Publishing Company received $1,548 from Santa Fe,Inc.for 36-month subscriptions to several different magazines.The subscriptions started immediately.What is the amount of revenue that should be recorded by Griffith Publishing Company for the second year of the subscription assuming the company uses a calendar reporting period?
A)$0.
B)$516.
C)$387.
D)$129.
E)$430.

Question

Quizplus · Accepted Answer

The total subscription amount of $1,548 is for 36 months. For the second year (12 months), the revenue recognized would be (12/36) * $1,548 = $516.

On April 1,Griffith Publishing Company Received $1,548 from Santa Fe,Inc