The publishers of 'Guide to the Stock Market',a magazine published monthly,received $121 in advance,including $11 GST on 1 March,for a 1 year's subscription 11 issues) beginning with the March issue.At the end of the financial year on 30 June what entry will the company make?
A) Debit Unearned Subscriptions liability) $40; credit Subscriptions Income $40
B) Debit Cash $40; credit Subscriptions Income $40
C) Debit Cash $121; credit GST Collections $11,credit Unearned Subscriptions liability) $110
D) Debit Unearned Subscriptions liability) $40; credit Subscriptions Income $36; credit GST Collections $4.
Correct Answer:
Verified
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