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On April 1, ABAC Farms, Inc. paid Goliath Publishing Company $1,548 for 36-month subscriptions to...

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Accounting

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On April 1, ABAC Farms, Inc. paid Goliath Publishing Company $1,548 for 36-month subscriptions to several different magazines. ABAC's accountant debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for ABAC Farms, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made? $1,548 $387 $516. $1,161. $0. On April 1, Goliath Publishing Company received $1,548 from ABAC Farms, 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 Goliath Publishing Company on December 31 of the second year? debit Unearned Fees, $1,548; credit Fees Earned, $1,548. debit Unearned Fees, $516; credit Fees Earned, $516. debit Unearned Fees, $1,161; credit Fees Earned, $1,161. debit Unearned Fees, $129; credit Fees Earned, $129. debit Unearned Fees, $387; credit Fees Earned, $387

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