On April 1, Garcia Publishing Company received $3,258 from Otisco, Inc. 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?

$814.50

Explanation:

The computation of the amount of revenue recorded by using a calender year is shown below:

= Received amount × number of months ÷ total number of months in a year

= $3,258 × 9 months ÷ 36 months

= $814.50

The nine months should be considered from April 1 to December 31 and the same is to be considered for this computation part

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