Answer:
Unearned Revenue A/c Dr. $3,870
To Fees Earned $3,870
Step-by-step explanation:
As provided, the subscription is for 3 years. That means 36 months.
That means one month amount of revenue = $15,480/36 = $430
Subscription amount is received on 31 March 2009.
That means revenue for the year earned is for the period = 1 April to 31 December 2009. = 9 months.
Earned revenue = $430
9 = $3,870
For this, earlier entry was done by crediting unearned revenue.
Now, on 31 December entry shall be:
Unearned Revenue A/c Dr. $3,870
To Fees Earned $3,870
In this manner the unearned revenue is converted into earned income.