The following ledger accounts are used by Paola Greyhound Park
Unearned Admissions Revenue
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year.
(a) On September 1, paid rent on the track facility for three months, $90,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $600,000.
(c) On September 1, borrowed $20,000 from First National Bank by issuing a 12% note payable due in three months.
(d) On September 5, schedules for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $7,500.
(e) The accountant for the concessions company reported that gross receipts for September were $140,000. Ten percent is due to Paola and will be remitted by October 10.
The Vaile Petting Zoo operates a drive through tourist attraction in Colorado. 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:
Prepaid Rent $12,000
Accumulated Depreciation-Fencing 5,500
Unearned Ticket Revenue 800
1. Three months' rent had been prepaid on April 1.
2. The fencing is being depreciated at $6,000 per year.
3. The unearned ticket revenue represents tickets sold for future zoo visits. The tickets were sold at $4.00 each on April 1. During April, 40 of the tickets were used by customers.
(a) Calculate the following:
1. Monthly rent expense.
2. The age of the fencing in months.
3. The number of tickets sold on April 1
(b) Prepare the adjusting entries that were made by the Vaile Petting Zoo on April 30.