On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year?
A. debit Unearned Fees, $516; credit Fees Earned, $516.
B. debit Unearned Fees, $1,548; credit Fees Earned, $1,548.
C. debit Unearned Fees, $387; credit Fees Earned, $387.
D. debit Unearned Fees, $1,161; credit Fees Earned, $1,161.
E. debit Unearned Fees, $129; credit Fees Earned, $129.
Answer: A
You might also like to view...
On June 1, Davis Inc issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscalyear of Garcia ends June 30 . Using the 360-day year, what is the amount of interest revenue recognized by Garciain the following year?
a. $700 b. $1,600 c. $1,061 d. $4,200
When two service businesses, H&R Block and Hyatt Legal Services, combined their efforts, they also joined marketing forces to create a strong alliance. This would classify as which type of strategic alliance? Explain your answer
What will be an ideal response?
The ending merchandise inventory is reported as a current asset on the balance sheet
Indicate whether the statement is true or false
Which of the following is a critical characteristic of good information?
A. accuracy B. abundance of details C. quantity D. ease of creation E. inexpensive