Wellness,a healthy living magazine,collected $516,000 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?
A) $215,000
B) $301,000
C) $516,000
D) $387,000

Question

Quizplus · Accepted Answer

The balance in the Unearned Revenue account as of December 31 is $215,000. This is because the company has collected $516,000 in subscription revenue, but only $301,000 of this revenue has been earned as of December 31. The remaining $215,000 of revenue will be earned in the next six months.

Wellness,a Healthy Living Magazine,collected $516,000 in Subscription Revenue on May