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21 April, 00:38

Bramble University sells 6,500 season basketball tickets at $40 each for its 13-game home schedule.

(a) Give the entry to record the sale of the season tickets.

(b) Give the entry to record the revenue recognized after playing the first game.

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  1. 21 April, 01:03
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    a. The entry to record the sale of the season tickets would be as follows:

    Debit Credit

    cash $260,000

    Unearned ticket revenue $260,000

    b. The entry to record the revenue recognized after playing the first game would be as follows:

    Debit Credit

    Unearned ticket revenue $20,000

    Ticket revenue $20,000

    Explanation:

    a. In order to Give the entry to record the sale of the season tickets we would have to make the following calculation:

    Cash=6,500*$40

    Cash=$260,000

    Therefore, entry would be as follows:

    Debit Credit

    cash $260,000

    Unearned ticket revenue $260,000

    b. In order to Give the entry to record the revenue recognized after playing the first game we would have to make the following calculation:

    unearned ticket revenue=$260,000/13

    unearned ticket revenue=$20,000

    Therefore, entry would be as follows:

    Debit Credit

    Unearned ticket revenue $20,000

    Ticket revenue $20,000
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