How much should people magazine report as the balance

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People magazine sells annual subscriptions. The magazine subscription fees are collected in advance and had a balance of $ 5,000,000 on December 31, 2015. The magazine received $3,500,000 in cash from subscribers in year 2016. Also, magazine subscription revenue reached $6,000,000 in the same year.

Question 1 : How much should People magazine report as the balance for magazine subscriptions collected in advance (i.e., unearned revenue) in its December 31, 2016 balance sheet?

Reference no: EM132512300

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