Question

Presale concert tickets - 12 POINTS March 1, Money Hungry concert venue pre-sells $2.500.000 tickets for the upcoming season. There are 25 total performances for the season. What is the Journal Entry on 317 Update the T-Accounts Cash Concert Revenue The end of the accounting period is 12/31. At that time there were 5 performance remaining What is the Journal entry on 12017 Update the T-Accounts Uneamed Revenue

Answer 1

Answer -

Step - (1) - Journal of Money Hungry concert venue -

Date	Account	Debit ($)	Credit ($)
3/1	Cash Unearned Revenue	2500000 -	- 2500000
12/31	Unearned Revenue Concert Revenue [$2500000 * (20 / 25)]	2000000 -	- 2000000

.

Step - (2) - Recording transactions in T- Accounts -

Cash Account

Debit			Credit
Date	Description	Amount ($)	Date	Description	Amount ($)
3/1	Unearned Revenue	2500000	-	-	-
	.			.
	Ending Balance	2500000			.

Concert Revenue

Debit			Credit
Date	Description	Amount ($)	Date	Description	Amount ($)
-	-	-	12/31	Unearned Revenue	2000000
	.			.
				Ending Balance	2000000

Unearned Revenue

Debit			Credit
Date	Description	Amount ($)	Date	Description	Amount ($)
12/31	Concert Revenue	2000000	3/1	Cash	2500000
	.			.
				Ending Balance	500000