Question

Concert Tickets Sold in Advance The Bard produces an outdoor concert festival that runs from June 28, 2017, through July 1, 2017. Concertgoers pay $80 for a four-day pass to the festival, and all 36,000 tickets are sold out by the May 1, 2017, deadline to buy tickets. Assume that the Bard prepares adjustments at the end of each month. Required: 1. Identify and analyze the transaction on May 1, 2017, assuming that all 36,000 tickets are sold on this date. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Inc Stockholders' Assets Liabilities Equity Revenues 2. Identify and analyze the adjustment on June 30, 2017 Activity Account Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be

Answer 1

Please hit LIKE button if this helped. Part 1 Activity Accounts Statements Operating Cash Increase, Customer Deposit Increase Balance Sheet Assets Liabilities Stockholder's Equity Revenue Expense Net Income Cash Customer Deposit $ 288,000 $ 288,000 Part 2 Activity Accounts Statements Operating Customer Deposit Decrease, Concert Festival Fees Revenue Balance Sheet and Income statement Assets Liabilities Stockholder's Equity Revenue Expense Net Income Customer Deposit $ -216,000 $ ($288,000*3/4) Concert Festival Fees Revenue 216,000 $ 216,000 $ 216,000 Part 3 Activity Accounts Statements Operating Customer Deposit Decrease, Concert Festival Fees Revenue Balance Sheet and Income statement Assets Liabilities Stockholder's Equity Revenue Expense Net Income Customer Deposit $ -72,000 $ ($288,000*1/4) Concert Festival Fees Revenue 72,000 $ 72,000 $ 72,000