on april 1, garcia publishing company received $2,718 from otisco, incorporated for 36 - month subscriptions…

on april 1, garcia publishing company received $2,718 from otisco, incorporated for 36 - month subscriptions to several different magazines. the subscriptions started immediately. what is the amount of revenue that should be recorded by garcia publishing company for the first year of the subscription assuming the company uses a calendar - year reporting period?\n\n$226.50.\n\n$679.50.\n\n$0.\n\n$906.00.\n\n$75.50.

on april 1, garcia publishing company received $2,718 from otisco, incorporated for 36 - month subscriptions to several different magazines. the subscriptions started immediately. what is the amount of revenue that should be recorded by garcia publishing company for the first year of the subscription assuming the company uses a calendar - year reporting period?\n\n$226.50.\n\n$679.50.\n\n$0.\n\n$906.00.\n\n$75.50.

Answer

Explanation:

Step1: Calculate monthly revenue

The total amount received for 36 - month subscriptions is $2718. So the monthly revenue is $\frac{2718}{36}=75.5$.

Step2: Determine number of months in first - year

The subscriptions start on April 1. In a calendar - year reporting period, the number of months from April 1 to December 31 is 9 months.

Step3: Calculate first - year revenue

The first - year revenue is the monthly revenue times the number of months in the first year, so $75.5\times9 = 679.5$.

Answer:

$679.50