The Lagrange Lions sports team has a stadium with a seating capacity of 29,000 s

Question

The Lagrange Lions sports team has a stadium with a seating capacity of 29,000 seats. Forty percent of the seats are occupied by season ticket holders who pay for their seats at the beginning of the season. The average ticket price for each game is $22 and the team plays 30 home games.

Required:

A. Prepare the journal entry for the company at the beginning of the season when all of the season ticket holders paid the amount due for their season tickets.

B. Assume that during the first month of the season the Lagrange Lions played 8 home games. Prepare the journal entry for this transaction.

Explanation / Answer

Answer: A Cash A/C Dr. $7656000

                      To unearned ticket revenue A/C            $7656000 (29000*40%*22*30)

Answer: B Unearned ticket revenue A/C Dr. $2041600

                     To Revenue A/C                                     $2041600

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