Question
On April 1, Griffith Publishing Company... On April 1, Griffith Publishing Company received $20,880 from Santa Fe, Inc. for 36-month subscriptions to several different magazines.
On April 1, Griffith Publishing Company...
On April 1, Griffith Publishing Company received $20,880 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 first year?
Multiple Choice
- debit Unearned Fees, $20,880; credit Fees Earned, $20,880.
- debit Unearned Fees, $6,960; credit Fees Earned, $6,960.
- debit Unearned Fees, $15,660; credit Fees Earned, $15,660.
- debit Unearned Fees, $1,740; credit Fees Earned, $1,740.
- debit Unearned Fees, $5,220; credit Fees Earned, $5,220.
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
5th Edition
0912503351, 9780912503356
