Mohling company typically sells subscriptions on an annual basis, and publishes eight times a year. the magazine sells 60,000 subscriptions in january at $10 each. recording the sale of the subscriptions involves a(n) group of answer choices increase to prepaid subscriptions and a decrease to cash for $600,000. increase to cash and an increase to unearned subscription revenue for $ 600,000. increase to subscriptions receivable and an increase to unearned subscription revenue for $75,000. increase to subscriptions receivable and an increase to subscription revenue for $600,000.

Option (B) is correct.

Explanation:

Given that,

Company sells subscriptions on an annual basis,

In January,

Mohling Company typically sells = 60,000 subscriptions

Selling price of each subscription = $10

Receipt from selling subscriptions:

= Number of subscriptions sold × Selling price of each subscription

= 60,000 × $10

= $600,000

At the time of receipt of Subscription amount below entry will be passed:

Cash A/c                              Dr. $600,000

To Unearned Subscription revenue A/c          $600,000

(To record the sale of the subscriptions)

Therefore, increase to Cash and an increase to Unearned Subscription Revenue for $ 600,000 is the correct answer.