Wellness, a healthy living magazine, collected $504,000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of December 31?

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Unearned Revenue = Subscription Revenue - Earned RevenueEarned Revenue = Subscription Revenue / Number of Months * Number of Months PassedEarned Revenue = 504,000 / 12 * 7 = 294,000Unearned Revenue = 504,000 - 294,000 = 210,000

Wellness, a Healthy Living Magazine, Collected $504,000 in Subscription Revenue