On April 1, Griffith Publishing Company received $30,780 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, $7,695; credit Fees Earned, $7,695.

• debit Unearned Fees, $30,780; credit Fees Earned, $30,780.

• debit Unearned Fees, $2,565; credit Fees Earned, $2,565.

• debit Unearned Fees, $10,260; credit Fees Earned, $10,260.

• debit Unearned Fees, $23,085; credit Fees Earned, $23,085.