Hen House,Inc.collects all subscription revenue in advance.At December 31,2011,the company owed $50,000 to customers for unearned revenue.During 2012,the company received $150,000 in advance from its customers and delivered $190,000 of magazines to its customers.How much subscription revenue will Hen House,Inc.report on its income statement for the year ended December 31,2012?

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Hen House, Inc. will report $190,000 as subscription revenue for the year ended December 31, 2012. This is calculated by adding the revenue earned during 2012 ($190,000 from delivering magazines) to the beginning unearned revenue balance ($50,000), then subtracting the amount received in advance during 2012 ($150,000), which results in $190,000 of earned revenue to be reported.