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26 September, 19:10

Fugazi City College sold season tickets for the 2013 football season for $200,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30:a. will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000. b. is not required. No adjusting entries will be made until the end of the season in November. c. will include a debit to Cash and a credit to Ticket Revenue for $60,000. d. will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000.

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  1. 26 September, 19:48
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    The adjusting journal entry is presented below:

    On September 30

    Unearned ticket revenue A/c Dr $75,000

    To Ticket revenue A/c $75,000

    (Being the unearned ticked revenue is recorded)

    The computation is shown below:

    = Season tickets sale value * number of games : given number of gains

    = $200,000 * 3 games : 8 games

    = $75,000
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