Winston Company sells magazine subscriptions for one- to three-year subscription periods.Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance,and this account had a balance of $9,600,000 at December 31,2013,before year-end adjustment.Outstanding subscriptions at December 31,2013,expire as follows: In its December 31,2013,balance sheet,what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000
B) $3,800,000
C) $7,600,000
D) $9,600,000

Question

Winston Company sells magazine subscriptions for one- to three-year subscription periods.Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance,and this account had a balance of $9,600,000 at December 31,2013,before year-end adjustment.Outstanding subscriptions at December 31,2013,expire as follows:  In its December 31,2013,balance sheet,what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000 
B) $3,800,000 
C) $7,600,000 
D) $9,600,000

Quizplus · Accepted Answer

The Answer of Winston Company sells magazine subscriptions for one- to three-year subscription periods.Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance,and this account had a balance of $9,600,000 at December 31,2013,before year-end adjustment.Outstanding subscriptions at December 31,2013,expire as follows:  In its December 31,2013,balance sheet,what amount should Winston report as the balance for magazine subscriptions collected in advance?
A) $2,000,000 
B) $3,800,000 
C) $7,600,000 
D) $9,600,000

Winston Company Sells Magazine Subscriptions for One- to Three-Year Subscription