Question

Fugazi City College sold season tickets for the 2015 football season for $240,000. A total of 8 games will be played during September, October and November. In September, two games were played. In October, three games were played. The balance in Unearned Ticket Revenue at October 31 is Group of answer choices

Answer 1

Answer:

$150,000

Explanation:

The computation of the balance in unearned revenue is shown below:

= Total sales revenue for season tickets × remaining games left ÷ total games played

= $240,000 × 5 games ÷ 8 games

= $150,000

The number of remaining games left is

= 2 games played in September + 3 games played in October

= 5 games played

Therefore we apply the above formula