Wellness, a healthy living magazine, collected $ 540, 000 in subscription revenue on May 31. Each...

Wellness, a healthy living magazine, collected $ 540, 000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of December 31?

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Expert Solution


	june to december will be earned that is for 7 months
	so unearned balance will be 12 - 7 months = 5 months


	Balance in unearned revenue account

	(540000/12)*5
	225000	answer

ekkarill92 answered 2 years ago

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​Wellness, a healthy living​ magazine, collected $ 540, 000 in subscription revenue on May 31. Each...