On April 1, Santa Fe, Incorporated paid Griffith Publishing Company 1,800 for 36-month subscriptions to several different magazines. Sonta Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started Immediately. What amount should appear in the Prepald Subscription account for Santa Fe, Incorporated after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made? Multiple Choice 450. 0. 600. 1,800. 1,350.

To determine the amount that should appear in the Prepaid Subscriptions account after adjustments on December 31 of the first year, we need to calculate how much of the prepaid subscription has been used up by that date.<br /><br />1. **Total Subscription Period**: 36 months<br />2. **Total Amount Paid**: \$1,800<br /><br />First, calculate the monthly expense for the subscriptions:<br /><br />\[<br />\text{Monthly Expense} = \frac{\$1,800}{36 \text{ months}} = \$50 \text{ per month}<br />\]<br /><br />Next, determine how many months have passed from April 1 to December 31:<br /><br />- April to December is 9 months.<br /><br />Calculate the total expense for these 9 months:<br /><br />\[<br />\text{Expense for 9 months} = 9 \text{ months} \times \$50/\text{month} = \$450<br />\]<br /><br />Subtract this amount from the initial prepaid amount to find the remaining balance in the Prepaid Subscriptions account:<br /><br />\[<br />\text{Remaining Balance} = \$1,800 - \$450 = \$1,350<br />\]<br /><br />Therefore, the amount that should appear in the Prepaid Subscriptions account after adjustments on December 31 is \(\$1,350\).<br /><br />The correct answer is: \(\$1,350.\)