On April 1, Griffith Publishing Company Received $1,548 from Santa

Multiple Choice

On April 1, Griffith Publishing Company received $1,548 from Santa Fe, 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 Griffith Publishing Company on December 31 of the first year?

A) debit Unearned Fees, $387; credit Fees Earned, $387.
B) debit Unearned Fees, $1,161; credit Fees Earned, $1,161.
C) debit Unearned Fees, $1,548; credit Fees Earned, $1,548.
D) debit Unearned Fees, $129; credit Fees Earned, $129.
E) debit Unearned Fees, $516; credit Fees Earned, $516.