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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. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the SECOND year?
a) debit Unearned Fees, $1,548; credit Fees Earned, $1,548.
b) debit Unearned Fees, $516; credit Fees Earned, $516.
c) debit Unearned Fees, $1,161; credit Fees Earned, $1,161.
d) debit Unearned Fees, $129; credit Fees Earned, $129.
e) debit Unearned Fees, $387; credit Fees Earned, $387.
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Answers: 2
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