Question

The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 108,000 fans. Assume the stadium sells out all five home games before the season begins, and the athletic department collects $56.70 million in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold? (Enter your answers in dollars, not in millions (i.e. $5.5 million should be entered as 5,500,000).) 2. & 3. Record the advance collection of $56.70 million in ticket sales and the revenue earned after the first home game is completed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 million should be entered as 5,500,000).)

Answer 1

Answer:

Check the explanation

Explanation:

Advance collection of tickets                                                     56700000

seating capacity of stadium                     108000  

no of games in a season                       5  

total ticket sold during the season             540000  

Average price per individual game ticket  

total advance collection/

noof tickets sold during the season                                                155

average price per season ticket                        155*5                775

2-  cash debit                                              56700000  

credit unearned revenue                                                      56700000

3-  unearned revenue debit                      16740000  

credit earned ticket revenue                                              16740000