Saturday, 15 March 2014

The following are the independent situations. a. Hockey Helpers paid $2,400 cash on September 30, to rent an arena for the months of October and November. b. Super Stage Shows received $6,100 on September 30, for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30). c. Risky Ventures paid $3,900 on September 30, for insurance coverage for the months of October, November, and December. Required: Prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31. (Omit the "$" sign in your response.) Date General Journal Debit Credit a) Sept. 30 Prepaid rent Cash Oct. 31 AJE Rent expense Prepaid rent b) Sept. 30 Cash Unearned revenue Oct. 31 AJE Unearned revenue Admissions revenue c) Sept. 30 Prepaid insurance Cash Oct. 31 AJE Insurance expense Prepaid insurance

The following are the independent situations.
 
a.
Hockey Helpers paid $2,400 cash on September 30, to rent an arena for the months of October and November.
b.
Super Stage Shows received $6,100 on September 30, for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30).
c.
Risky Ventures paid $3,900 on September 30, for insurance coverage for the months of October, November, and December.

Required:
Prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31. (Omit the "$" sign in your response.)
 
  Date General Journal      Debit Credit
a) Sept. 30  Prepaid rent  
        Cash    
         
  Oct. 31 AJE  Rent expense  
        Prepaid rent    
         
b) Sept. 30  Cash  
        Unearned revenue    
         
  Oct. 31 AJE  Unearned revenue  
        Admissions revenue    
         
c) Sept. 30  Prepaid insurance  
       Cash    
         
  Oct. 31 AJE  Insurance expense  
       Prepaid insurance    

 

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