Calculate the amount of unearned revenue

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Reference no: EM132651392

Question - ABC Company is a magazine publisher. In an effort to expand the magazine's circulation, ABC Company decided to give new subscribers a large discount if they subscribe to three years of magazines in advance. Under this program, ABC Company attracted 5,860 new subscribers, each of whom paid $90 for 3 year subscription. ABC Company received the cash in December, 2021 while the subscriptions start in April, 2022 and run through March, 2025. Calculate the amount of unearned revenue shown in ABC Company's balance sheet at December 31, 2023.

Reference no: EM132651392

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