Multiple Choice
On March 31, Phoenix, Inc. paid Melanie Publishing Company $15,480 for a 3-year subscription for five different magazines. The subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Phoenix Company after adjustments on December 31 each year assuming Phoenix using a calendar reporting period?
A) $15,480; $11,610; $6,540; $1,290.
B) $3,870; $5,160; $5,160; $1,290.
C) $5,160; $5,160; $5,160.
D) $11,610; $6,450; $1,290; $0.
E) The answer cannot be determined based on the information given.
Correct Answer:
Verified
Correct Answer:
Verified
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