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 109,500 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $78.84 million in ticket sales.

1. What is the average price per season ticket and average price per individual game ticket sold?

-season ticket:

-Individual game ticket:

2. & 3. Record the advance collection of $78.84 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

1) Average price per season ticket Total price of season tickets/sitting capacity (78,840,000/109500) 720 Average price per individual game (720/6) 120 2) Date Accounts title and Explanation Debit Credit Cash 78840000 Unearned Revenue 78840000 ( To record the advance collection of cash for ticket sales) Unearned revenue (78840000/6) 13140000 Sales revenue ( To record the recognition of sales revenue)

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