Question

Coronado University sells 5,900 season basketball tickets at $210 each for its 12-game home schedule.

(a) Give the entry to record the sale of the season tickets
(b) Give the entry to record the revenue recognized after playing the first home game.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

a. Cash A/c Dr $1,239,000 (5,900 seasons × $210)

To Unearned basket ball tickets revenue $1,239,000

(Being the sale of the season tickets are recorded)

b. Unearned basket ball tickets revenue $103,250 ($1,239,000 ÷ 12)

To basket ball tickets revenue $103,250

(Being the revenue recognized)