On April 1. Griffith Publishing Company received \( \$ 2,538 \) from Santa Fe, Incorporated for 36 -month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period?

To determine the amount of revenue that Griffith Publishing Company should record for the first year of the subscription, we need to follow these steps: 1. **Identify the total subscription amount**: The total amount received for the subscriptions is \( \$2,538 \). 2. **Determine the duration of the subscription**: The subscriptions are for a total of 36 months. 3. **Calculate the monthly revenue**: To find the monthly revenue, we divide the total subscription amount by the number of months in the subscription: \[ \text{Monthly Revenue} = \frac{\text{Total Subscription Amount}}{\text{Number of Months}} = \frac{2538}{36} \] 4. **Calculate the revenue for the first year**: Since the first year consists of 12 months, we multiply the monthly revenue by 12: \[ \text{Revenue for First Year} = \text{Monthly Revenue} \times 12 \] Now, let's perform the calculations step by step. First, we calculate the monthly revenue. \[ \text{Monthly Revenue} = \frac{2538}{36} \] Next, we will calculate the revenue for the first year. \[ \text{Revenue for First Year} = \text{Monthly Revenue} \times 12 \] Let's calculate these values. Calculate the value by following steps: - step0: Calculate: \(\frac{2538}{36}\) - step1: Reduce the fraction: \(\frac{141}{2}\) Calculate or simplify the expression \( (2538/36)*12 \). Calculate the value by following steps: - step0: Calculate: \(\left(\frac{2538}{36}\right)\times 12\) - step1: Reduce the fraction: \(\frac{141}{2}\times 12\) - step2: Reduce the numbers: \(141\times 6\) - step3: Multiply the numbers: \(846\) 1. **Monthly Revenue Calculation**: \[ \text{Monthly Revenue} = \frac{2538}{36} = 70.5 \] 2. **Revenue for the First Year Calculation**: \[ \text{Revenue for First Year} = 70.5 \times 12 = 846 \] Thus, the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription is **$846**.