Charleswood Musical Theatre\'s season begins in November and ends in April, with
ID: 2575126 • Letter: C
Question
Charleswood Musical Theatre's season begins in November and ends in April, with a different play each month. In October 2017, Charleswood sold 240 season tickets for the 2017–18 season, for $210 each. Charleswood records all season ticket sales as unearned revenue and adjusts its accounts on a monthly basis. The company has a March 31 fiscal year end.
1)Prepare the entry for sale of the season tickets on Oct. 31, 2017.
2)Prepare the required adjusting entries on the following dates.
Nov. 30, 2017
Mar. 31, 2018
Apr. 30, 2018
3)Determine the balance (after any required adjustments) in Unearned Revenue on the following dates:
Oct. 31, 2017
Nov. 30, 2017
Dec. 31, 2017
Jan. 31, 2018
Feb. 28, 2018
Mar. 31, 2018
Apr. 30, 2018
Nov. 30, 2017
Mar. 31, 2018
Apr. 30, 2018
Explanation / Answer
1)entry for sale of the season tickets on Oct. 31, 2017.
2.
Adjusting entries:
3.
Unearned revenue:
Oct 31,2017 Cash($210×240) $50,400 Unearned revenue $50,400