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

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) DR Unearned subscriptions (liability) $40; CR Subscriptions income $40
B) DR Cash $40; CR Subscriptions income $40
C) DR Cash $121; CR GST collections $11; CR Unearned subscriptions (liability) $110
D) DR Unearned subscriptions (liability) $40; CR Subscriptions income $36; CR GST collections $4