Question

Big Apple Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $2000. During March, Big Apple sold 300 tickets at $20 each, and 250 tickets were used during the month. What is the balance in Unearned Revenue at the end of March

Answer 1

Credit balance of $3,000

Step-by-step explanation:

Calculation of unearned revenue balance at the end of march

Particulars Amount

Beginning balance $2,000

Add: during the march (300*$20) $6,000

Total unearned revenue balance $8,000

Less: Ticket used (250*$20) $5,000

Ending balance $3,000

So, the balance in Unearned Revenue at the end of March is Credit balance of $3,000.