The publisher of Accounting Digest received the following 12-month subscriptions during 2018.Each subscription is $100.The company has a December 31 year end.Each subscription becomes effective in the calendar month after the company receives the subscription.What amount of revenue will the company record in 2018 for the subscriptions received between January-March? (Round your response to the nearest dollar).

A)$315,000
B)$779,167
C)$1,051,667
D)$1,260,000

Question

The publisher of Accounting Digest received the following 12-month subscriptions during 2018.Each subscription is $100.The company has a December 31 year end.Each subscription becomes effective in the calendar month after the company receives the subscription.What amount of revenue will the company record in 2018 for the subscriptions received between January-March? (Round your response to the nearest dollar) .

A)$315,000 
B)$779,167 
C)$1,051,667 
D)$1,260,000

Quizplus · Accepted Answer

C)[(4,300 ∗ 11/12 months)+ (4,200 × 10/12 months)+ (4,100 ∗ 9/12 months)] ∗ $100 subscription price = $1,051,667

The Publisher of Accounting Digest Received the Following 12-Month Subscriptions