On July 1, 20x1, Mauriat paid $82723 towards a 3-year subscription for an accounting journal. Which of the following statements will be correct as a result of this transaction?

Select one:

a. Under cash basis accounting, there will be a zero balance in the prepaid subscription account on December 31, 20x1

b. Under cash basis accounting, the subscription expense for the period ending December 31, 20x1, will be $13787

c. Under cash basis accounting, there will be a balance of $55149 in the prepaid subscription account on December 31, 20x1

d. There will be no subscription expense for December 31, 20x1.