Winston Company sells magazine subscriptions for one- to three-year subscription periods. Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance, and this account had a balance of $9,600,000 at December 31, 2011, before year-end adjustment. Outstanding subscriptions at December 31, 2011, expire as follows:

In its December 31, 2011, balance sheet, what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000
B) $3,800,000
C) $7,600,000
D) $9,600,000

Question

Winston Company sells magazine subscriptions for one- to three-year subscription periods. Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance, and this account had a balance of $9,600,000 at December 31, 2011, before year-end adjustment. Outstanding subscriptions at December 31, 2011, expire as follows:

In its December 31, 2011, balance sheet, what amount should Winston report as the balance for magazine subscriptions collected in advance?

In its December 31, 2011, balance sheet, what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000 
B) $3,800,000 
C) $7,600,000 
D) $9,600,000

Quizplus · Accepted Answer

The Answer of Winston Company sells magazine subscriptions for one- to three-year subscription periods. Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance, and this account had a balance of $9,600,000 at December 31, 2011, before year-end adjustment. Outstanding subscriptions at December 31, 2011, expire as follows:

In its December 31, 2011, balance sheet, what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000 
B) $3,800,000 
C) $7,600,000 
D) $9,600,000

Winston Company Sells Magazine Subscriptions for One- to Three-Year Subscription