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-year reporting period?
A) $0.
B) $516.
C) $387.
D) $129.
E) $430.

Question

Quizplus · Accepted Answer

$1,548/36 = $43 per month
Year 1: $43 * 9 months = $387
Year 2: $43 * 12 months = $516
Year 3: $43 * 12 months = $516
Year 4: $43 * 3 months = $129

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