improvements, a home improvement magazine, collected $1,440,000 in subscription revenue on june 30. each…

improvements, a home improvement magazine, collected $1,440,000 in subscription revenue on june 30. each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the july issue. the company uses the accrual method of accounting. what is the amount of subscription revenue that has been earned by the end of december? (round any intermediate calculations to two decimal places, and the final answer to the nearest whole number.)\n\na. $1,440,000\nb. $840,000\nc. $600,000\nd. $720,000

improvements, a home improvement magazine, collected $1,440,000 in subscription revenue on june 30. each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the july issue. the company uses the accrual method of accounting. what is the amount of subscription revenue that has been earned by the end of december? (round any intermediate calculations to two decimal places, and the final answer to the nearest whole number.)\n\na. $1,440,000\nb. $840,000\nc. $600,000\nd. $720,000

Answer

Answer:

C. $600,000

Explanation:

Step1: Calculate monthly revenue

The total subscription revenue is $1,440,000 for 12 - month period. So the monthly revenue is $\frac{1440000}{12}=120000$.

Step2: Determine number of months passed

From July to December, the number of months passed is 6 months.

Step3: Calculate earned revenue

The earned revenue is the monthly revenue times the number of months passed, so $120000\times6 = 720000$.