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4 April, 04:58

Prepare the journal entry, if any, required to record each of the initial business activities on September 1. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a. On September 1, paid rent on the track facility for six months at a total cost of $12,000.

b. On September 1, received $55,200 for season tickets for 12-month admission to the race track.

c. On September 1, booked the race track for a private organization that will use the track one day per month for $1,900 each time, to be paid in the following month. The organization uses the track on September 30.

d. On September 1, hired a new manager at a monthly salary of $3,100, to be paid the first Monday following the end of the month.

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  1. 4 April, 05:06
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    The journal entries are as follows:

    (a) On September 1,

    Prepaid rent A/c Dr. $12,000

    To cash A/c $12,000

    (To record the prepaid rent)

    On September 30,

    Rent expense A/c ($12,000 : 6) Dr. $2,000

    To Prepaid rent A/c $2,000

    (To record the rent expense)

    (b) On September 1,

    Cash A/c Dr. $55,200

    To unearned revenue $55,200

    (To record the unearned revenue)

    On September 30,

    Unearned revenue A/c ($55,200 : 12) Dr. $4,600

    To ticket revenue $4,600

    (To record the ticket revenue)

    (c) On September 1,

    No entry required.

    On September 30,

    Account receivable A/c Dr. $1,900

    To Rent revenue $1,900

    (To record the accounts receivable)

    (d) On September 1 - No journal entry required

    On September 30,

    Salary expense A/c Dr. $3,100

    To salaries payable $3,100

    (To record the salaries expense)
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