## 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