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) Healthy Living, a diet magazine, collected $240,000 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 amount of Subscription Revenue that has been earned by the end of December

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tanseershar

Answer:    

$140,000

Explanation:

$240,000*7/12= $140,000

The journal entry to record accrual of subscription will be as follows;

Unearned Subscription Income    Dr.$140,000

Subscription Income                      Cr.&140,000

The entry made at time of receipt of subscription was;

Bank Dr.$240,000

Unearned Subscription income  Cr.$240,000

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