Barker, Inc. receives subscription payments for annual (one year) subscriptions to its magazine. Payments are recorded as revenue when received. Amounts received but unearned at the end of each of the last three years are shown below.

Barker failed to record the unearned revenues in each of the three years. The entry needed to correct the above errors is
A) Retained Earnings .................. 150,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 176,000
B) Retained Earnings .................. 30,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 56,000
C) Subscription Revenues .............. 176,000 Unearned Revenues ............... 176,000
D) Subscription Revenues .............. 150,000 Retained Earnings .................. 26,000 Unearned Revenues ............... 176,000

Question

Barker, Inc. receives subscription payments for annual (one year) subscriptions to its magazine. Payments are recorded as revenue when received. Amounts received but unearned at the end of each of the last three years are shown below.

Barker failed to record the unearned revenues in each of the three years. The entry needed to correct the above errors is

Barker failed to record the unearned revenues in each of the three years. The entry needed to correct the above errors is
A) Retained Earnings .................. 150,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 176,000 
B) Retained Earnings .................. 30,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 56,000 
C) Subscription Revenues .............. 176,000 Unearned Revenues ............... 176,000 
D) Subscription Revenues .............. 150,000 Retained Earnings .................. 26,000 Unearned Revenues ............... 176,000

Quizplus · Accepted Answer

The Answer of Barker, Inc. receives subscription payments for annual (one year) subscriptions to its magazine. Payments are recorded as revenue when received. Amounts received but unearned at the end of each of the last three years are shown below.

Barker failed to record the unearned revenues in each of the three years. The entry needed to correct the above errors is
A) Retained Earnings .................. 150,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 176,000 
B) Retained Earnings .................. 30,000 Subscription Revenues .............. 26,000 Unearned Revenues ............... 56,000 
C) Subscription Revenues .............. 176,000 Unearned Revenues ............... 176,000 
D) Subscription Revenues .............. 150,000 Retained Earnings .................. 26,000 Unearned Revenues ............... 176,000