Answer:
a. On September 1, paid rent on the track facility for six months at a total cost of $12,000.
September 1
Dr Prepaid rent 12,000
Cr Cash 12,000
September 30
Dr Rent expense 2,000
Cr Prepaid 2,000
b. On September 1, received $60,000 for season tickets for 12-month admission to the race track.
September 1
Dr Cash 60,000
Cr Deferred revenue 60,000
September 30
Dr Deferred revenue 5,000
Cr Revenue 5,000
c. On September 1, booked the race track for a private organization that will use the track one day per month for $2,000 each time, to be paid in the following month. The organization uses the track on September 30.
September 30
Dr Accounts receivable 2,000
Cr Revenue 2,000
d. On September 1, hired a new manager at a monthly salary of $3,000, to be paid the first Monday following the end of the month.
September 30
Dr Wages expense 3,000
Cr Wages payable 3,000
