On April 1,Garcia Publishing Company received $1,548 from Otisco,Inc.for 36-month subscriptions to several different magazines.The subscriptions started immediately.What is the amount of revenue that should be recorded by Garcia 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

The total amount received for the 36-month subscriptions is $1,548. To find the annual revenue, divide the total by 3 (since 36 months is equal to 3 years). $1,548 / 3 = $516. Therefore, the revenue recorded for the second year is $516.

On April 1,Garcia Publishing Company Received $1,548 from Otisco,Inc