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2 years ago

Kirkland sells season tickets for six events at a price of $48. For the 2013 season, 2,700 season tickets were sold.

Business

1 answer:

alexira [117]2 years ago

4 0

Answer:

a. Assets = Liabilities + Stockholders' Equity = $129,600

b. Debit Unearned ticket revenue for $129,600, and Credit Total revenue for $129,600.

c. It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Explanation:

a. Use the horizontal model to show the effect of the sale of the season tickets. (Enter decreases to account balances with a minus sign.)

Note: See the attached excel file for the horizontal model showing the effect of the sale of the season tickets.

In the attached excel file, the following calculation is done:

Cash = Unearned ticket revenue = Price per season ticket * Number of season tickets sold = $48 * 2,700 = $129,600

Since Stockholders' Equity is equal to zero in the attached excel file, we have:

Assets = Liabilities + Stockholders' Equity = $129,600

b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.

The journal entry will look as follows:

General Journal Debit ($) Credit ($)

Unearned ticket revenue 129,600

Total revenue 129,600

(To record the effect of presenting an event.)

c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?

It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Download xlsx

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How supply and demand work together to reach the equilibrium price in the marketplace? Please give at least a paragraph. Thank y

grandymaker [24]

Answer

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3 years ago

Read 2 more answers

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 pe

umka21 [38]

Answer:

50%

Explanation:

Given: Selling price= $120 per unit.

Variable cost= $60 per unit.

First computing contribution margin.

Contribution margin= $Selling\ price\ per\ unit - variable\ cost\ per\ unit$

⇒ Contribution margin= $\$120 - \$ 60$

∴ Contribution margin= $\$ 60$

Now, calculating the contribution margin ratio.

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3 years ago

The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $88 million.

Alinara [238K]

It can be deduced that the cash flow shows that the net cash provided by operating activities will be $58 million.

<h3>How to compute the statement of cash flow</h3>

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Decrease in account receivable = $4 million

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Increase in prepaid expense = ($2 million)

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brainly.com/question/735261

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2 years ago

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest

Anarel [89]

Answer:

$14,343.25

Explanation:

First city bank pays 8% simple interest in a savings account

Second city bank pays 8% interest compounded annually

$68,000 is deposited deposited in each of the bank

The first step is to calculate the simple interesr per year of first city bank

= principal × rate

= 68,000 × 8/100

= 68,000 × 0.08

= 5,440

The interest earned for the period of 8 years can be calculated as follows.

= 5,440 × 8

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The balance at the end of 8 years can be calculated as follows

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= principal × (1+R)^n

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= 68,000 × (1+0.08)^8

= 68,000 × 1.08^8

= 68,000 × 1.85093021

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Therefore the amount of money earned from second city bank at the end of 8 years can be calculated as follows

= 125,863.25-111,520

= 14343.25

Hence the money that was earned from second city bank at the end of 8 years is $14,343.25

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