Please show correct work . I will rate Life Saver. Real Losers, a diet magazine,

Question

Please show correct work . I will rate Life Saver.

Real Losers, a diet magazine, collected $360,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for 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 at the end of December?

Explanation / Answer

2,000 per week (5 working days Monday –Friday)so 2000/5=400 per day==> 400*4=1600 (Monday-Thursday). Do the entry below for accrual adjustment DR. Salaries Expenses 1600 Cr. Salaries Payable 1600 So answer is D

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