Check out www.investlikeme.blogspot.com. There is an article on getting started in the market and how to read a stock profile. The author also shares his own personal portfolio which you can follow along with on twitter.

In November and December, 2004, Paul Company, a newly organized magazine

publisher received $60,000 for 1,000 subscriptions (each subscription lasts for 3 years) to

a new monthly magazine at $20 per year, starting with the first issue in March, 2005.

REQUIRED:

Fill in the chart below relating to the amount of revenue to be recorded in each year assuming a year-end of December 31.



Revenue Unearned Revenue at December 31

2004

2005

2006

2007

Answer:

2004 Revenue: $0 Unearned Revenue: $60,000

2005 Revenue: $16,667 Unearned Revenue: $43,333

2006 Revenue: $20,000 Unearned Revenue: $23,333

2007 Revenue: $20,000 Unearned Revenue: $3,333

I do not understand how the study guide came up with the following answers. Can someone please explain? Thank you!