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The Defiance College sells season tickets for four home ...

The Defiance College sells season tickets for four home football games at a price of $15. For the 2009 season, 5,000 season tickets were sold.
(a.) Write the journal entry or use the horizontal model to show the effect of the sale of the season tickets.
(b.) Write the journal entry or use the horizontal model to show the effect of hosting a home football game.
(c.) Where on the balance sheet would the account balance representing funds received for games not yet played be classified? Assume that The Defiance College follows the same accounting and financial reporting procedures that are used in business.

Solution Preview

(a.) Write the journal entry or use the horizontal model to show the effect of the sale of the season tickets.

Journal entry:

Cash 75000 (15 x 5000)
Unearned sales ...

Solution Summary

The Defiance College sells season tickets for four home football games at a price of $15. For the 2009 season, 5,000 season tickets were sold.
(a.) Write the journal entry or use the horizontal model to show the effect of the sale of the season tickets.
(b.) Write the journal entry or use the horizontal model to show the effect of hosting a home football game.
(c.) Where on the balance sheet would the account balance representing funds received for games not yet played be classified? Assume that The Defiance College follows the same accounting and financial reporting procedures that are used in business.

$2.19