Winn Co. sells subscriptions to a specialized directory that is published semiannually and shipped to subscribers on April 15 and October 15. Subscriptions received after the March 31 and September 30 cutoff dates are held for the next publication. Cash from subscribers is received evenly during the year and is credited to deferred subscription revenue. Data relating to year 2 are as follows:
Deferred subscription revenue, 1/1/Y2 $ 750,000
Cash receipts from subscribers 3,600,000
Required:
(A) In its December 31, year 2 balance sheet, Winn should report deferred subscription revenue of .
O $ 900,000
O $2,700,000
O $1,800,000
O $1,650,000
Answers: 2
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