Real Losers, a Diet Magazine, Collected $360 000 in Subscription

Multiple Choice

Real Losers, a diet magazine, collected $360 000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for 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 at the end of December?

A) $0
B) $330 000
C) $360 000
D) $150 000