Answer:
a.
Season tickets the Dingos sold: 5,400 tickets;
b.
Home games the Dingos played by the end of October: 11 games;
c.
The entry for the initial recording of the Unearned Ticket Revenue:
Dr Cash 1,728,000
Cr Unearned Ticket Revenue 1,728,000
d.
The entry to recognize the revenue after the first home game had been played:
Dr Unearned Ticket Revenue 108,000
Cr Revenue 108,000
Explanation:
As an equal amount of revenue is recognized after each game is played, this amount is calculated as: Total Unearned Ticket Revenue at the beginning of the season / Total number of home games = 1,728,000/16 = $108,000.
a.
Number of tickets sold = Total Unearned Ticket Revenue at the beginning of the season / Price per ticket = 1,728,000 / 320 = 5,400 tickets
b.
Home games played by the end of October = Recognized unearned revenue by the end of October / equal amount of revenue recognized after each game = 1,188,000/108,000 = 11 games.
c.
As ticket is bought in cash, Cash account goes up (Dr) by $1,728,000; Unearned Ticket Revenue also goes up (Credit - as this is liability account) by the same amount.
d.
After the first home game is played, an equal amount of revenue recognized after each game should be recorded as revenue by decreasing the Unearned Ticket Revenue ( Dr) by 108,000 and increases (Cr) the revenue account by 108,000.
