Question
On April 1, Garcia Publishing Company received $25,380 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue for the
On April 1, Garcia Publishing Company received $25,380 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue 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 Garcia Publishing Company on December 31 of the first year?
Multiple Choice
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debit Unearned Revenue, $6,345; credit Revenue, $6,345.
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debit Unearned Revenue, $19,035; credit Revenue, $19,035.
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debit Unearned Revenue, $2,115; credit Revenue, $2,115.
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debit Unearned Revenue, $25,380; credit Revenue, $25,380.
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