The Publishers of 'Guide to the Stock Market',a Magazine Published

Multiple Choice

The publishers of 'Guide to the Stock Market',a magazine published monthly,received $121 in advance,including $11 GST on 1 March,for a 1 year's subscription 11 issues) beginning with the March issue.At the end of the financial year on 30 June what entry will the company make?

A) Debit Unearned Subscriptions liability) $40; credit Subscriptions Income $40
B) Debit Cash $40; credit Subscriptions Income $40
C) Debit Cash $121; credit GST Collections $11,credit Unearned Subscriptions liability) $110
D) Debit Unearned Subscriptions liability) $40; credit Subscriptions Income $36; credit GST Collections $4.