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