The University of Michigan football stadium, built in 1927, is the largest colle

Question

The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 110,000 fans. Assume the stadium sells out all five home games before the season begins, and the athletic department collects $68.75 lion 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.) Season ticket Individual game ticket 2. & 3. Record the advance collection of $68.75 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 answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)

Explanation / Answer

Requirement 1

Total Revenue collections = $ 68,750,000
Seating Capacity = 110,000
Average price per season ticket (687500000/110000) = $ 625
No. of games in the season = 5
Average price per individual game (625/5) = $ 125

Requirement 2

Cash Dr $ 68,750,000
Unearned Ticket Revenue $ 68,750,000
(Advance ticket collections)

Requirement 3

Unearned Ticket Revenue (110000*125) Dr $ 13,750,000
Ticket sales revenue $ 13,750,000
(Income recognized after first match tickets sold)

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