The beginning balance in unearned subscription revenue is $900. The ending balance in unearned subscription revenue is $915. Cash received for prepaid subscription during the period is $230. How much subscription revenue was earned during the period?
Solution:
Subscription revenue earned during the period = $215
Explanation:
The beginning balance in unearned subscription revenue is $900
The endin balance in unearned subscription revenue is $915
Cash received for prepaid subscription during the period is $230
The subscription revenue was earned during the period
=Beginning balanace + Cash received for prepaid subscription - Ending balance
= $900 + $230 -$915
= $215 Which is shown in income and expenditure accounts
$230 is shown in receipts and payments accounts
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