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On April 1, ABAC Farms, Inc. paid Goliath Publishing Company $1,548 for 36-month subscriptions to several different magazines. ABAC's accountant debited the prepayment to
On April 1, ABAC Farms, Inc. paid Goliath Publishing Company $1,548 for 36-month subscriptions to several different magazines. ABAC's accountant debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for ABAC Farms, Inc. after adjustments on December 31 of the second year assuming the company is using a calendar-year reporting period and the previous year adjustment had been made? $1,548. $387. $516. $645. $0.
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Introduction to Financial Accounting
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
11th edition
978-0133251111, 013325111X, 0133251039, 978-0133251036
