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k0ka [10]
3 years ago
8

Trinity College sold season tickets for the 2019 football season for $400,000. A total of 8 games will be played during Septembe

r, October and November. In September, two games were played. In October, three games were played. What is the balance in Unearned Ticket Revenue as of October 31 (after adjusting entries has been made)?
Business
2 answers:
BabaBlast [244]3 years ago
8 0

Answer:

$150,000

Explanation:

Monthly revenue = Total revenue × (Number of games played in a month ÷ Total number of games expected to be played for the three months)

We can then proceed as follows:

September ticket revenue = $400,000 × (2 ÷ 8) = $100,000

October ticket revenue = $400,000 × (3 ÷ 8) = $150,000

Number of games yet to be played = 8 - 2 - 3 = 3

Unearned Ticket Revenue = Total revenue - September ticket revenue - October ticket revenue = $400,000 - $100,000 - $150,000 = $150,000

Therefore, the balance in Unearned Ticket Revenue as of October 31 (after adjusting entries has been made) is $150,000.

Softa [21]3 years ago
3 0

Answer:

Trinity College sold 8 Games of ticket in $400,000  

Till October 31 the game sorted out = 5 for example (2+3)  

Measure of unmerited income on October 31

Unearned ticket revenue = (Amount received in advance × remaining month) / total month

Unearned ticket revenue = ($400,000 × 3) / 8

Unearned ticket revenue = $150,000

Adjusting Journal entry on October 31:

Debit: Unearned revenue = $250,000

Credit: Revenue = $250,000

(To record transfer of unearned revenue, to revenue account)

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Answer:

a. Debit to Prepaid Insurance of $10,000

* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.

Explanation:

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The company expensed all amount by positing following entry ( which is a wrong entry)

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It should be entered as follow:

DR.   Prepaid Insurance   $12,000

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Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.

DR.   Prepaid Insurance   $10,000

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3 years ago
The federal deposit insurance corporation insures bank accounts up to a particular amount. this means that if the bank fails, th
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Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. T
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Answer:

Mel

If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.

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Explanation:

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Mel's value of a cruise in bad weather = $50

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6 0
2 years ago
Each of the following situations occurred during 2011 for one of your audit clients:1. The write-off of inventory due to obsoles
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Answer:

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A. Appropriate Reporting Treatments:

1. Write-off of inventory due to obsolescence.

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c. As a prior period adjustment.

3. The useful lives of all machinery were changed from eight to five years.

f. As a change in accounting estimate.

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e. As a discontinued operation.

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d. As a change in accounting principle.

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1. CO

2. RE

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4. RE

5. BC

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1. Investopedia.com defined "Unusual or infrequent items" as "gains or losses from a lawsuit; losses or slowdown of operations due to natural disasters; restructuring costs; gains or losses from the sale of assets; costs associated with acquiring another business; losses from the early retirement of debt; and plant shutdown costs."

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