In November and December 2011, Bee Company, a newly organized newspaper publisher, received $72,000 for 1,000 three-year subscriptions at $24 per year, starting with the January 2, 2012, issue of the newspaper. How much should Bee report in its 2011 income statement for subscription revenue?
A) $0
B) $12,000
C) $24,000
D) $72,000

Question

Quizplus · Accepted Answer

Bee Company should report $0 in its 2011 income statement for subscription revenue because the subscriptions start in January 2012, and revenue is recognized when earned, not when cash is received.

In November and December 2011, Bee Company, a Newly Organized