Monday, 17 March 2014

A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the five-show season starts this week. a. The sale of the season tickets before the first show. b. The revenue earned after putting on the first show. 1. award: 10 out of 10.00 points You did not receive credit for this question in a previous attempt Requirement 1: Show the accounting equation effects (+ for increase, – for decrease and NE for no effect) . Assets = Liabilities + Stockholders' Equity (a) Cash + 375,000 Unearned revenue + 375,000 No effect NE (b) No effect NE Unearned revenue -75,000 Performance revenue +75,000 ________________________________________ Requirement 2: Prepare the journal entries. (Omit the "$" sign in your response.) General Journal Debit Credit (a) Cash Unearned revenue (b) Unearned revenue Performance revenue ________________________________________ Explanation: Before the first show: Cash (1,500 × $250) = 375,000 After the first show: Performance revenue ($375,000 × 1/5 shows) = 75,000


A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the five-show season starts this week.

 
a.
The sale of the season tickets before the first show.
b.
The revenue earned after putting on the first show.

 1.
award:
10 out of
10.00 points


Requirement 1:
Show the accounting equation effects (+ for increase, – for decrease and NE for no effect) .
 

Assets
=
Liabilities
+
Stockholders' Equity
(a)  
  Cash
+ 375,000  

  Unearned revenue
+ 375,000  

  No effect
NE  
(b)  
  No effect
NE  

  Unearned revenue
-75,000  

  Performance revenue
+75,000  

 

Requirement 2:
Prepare the journal entries. (Omit the "$" sign in your response.)


General Journal
Debit
Credit
(a)    
  Cash



     Unearned revenue






(b)    
  Unearned revenue



     Performance revenue



 

Explanation:
 
Before the first show:
Cash (1,500 × $250) = 375,000
After the first show:
Performance revenue ($375,000 × 1/5 shows) = 75,000