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Lawyers amp company subscribes to three magazines and pays

Lawyers & Company subscribes to three magazines and pays $140, $90 and $76, respectively, on 1 January 2014. The subscriptions are for one year and are recorded in Prepaid Subscriptions when paid. At 30 June 2014, what amount is recorded for ‘magazine expense’ and what is the balance of the Prepaid Subscription account?

Magazine expense Prepaid Subscriptions

A. $306 $306

B. $25.50 $153

C. $153 $153

D. $25.50 $306

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Financial Accounting: Lawyers amp company subscribes to three magazines and pays

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