The White Stripes Animal Encounters operates a drive through tourist attraction.

Question

The White Stripes Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following:

Other data:

The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at $5.00 each on April 1. During April, thirty of the tickets were used by customers.

Calculate the following:

1- Monthly rent Expense

2- the age of the buildings in months

3- The number of Tickets sold in April 1st

Prepaid Rent $16,000 Buildings 30,000 Accumulated Depreciation—Buildings 6,600 Unearned Ticket Revenue 600

Explanation / Answer

1) Rent paid april 1 for 3 months after adjusting entry april 30 prepaid rent balance 16000 which is for 2 months so monthly rent expense = 16000/2 = 8000

2) Age of building in month is = 7200/12 = 600 per month

Accumlated dep = 6600

Which is for 11 months

3) No of tickets sold on april 1 = (600/5+30) = 150 tickets

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