Adjusting entries
Not what you're looking for?
An NBA basketball team sells season tickets worth $48 million before the basketball season starts late in the year. Assume this $48 million is debited to Cash and credited to Unearned Ticket Revenue. By the end of the calendar year, which also happens to be the end of the team's accounting period, 25% of the games have been played. What adjusting journal entry should be made at the end of the year?
A.Unearned Ticket Revenue, debit, $12 million; Cash, credit, $12 million.
B. Ticket Revenue, debit, 12 million; Unearned Ticket Revenue, credit, $12 million. C. Unearned Ticket Revenue, debit, $12 million; Ticket Revenue, credit, $12 million.
D. Ticket Revenue, debit, $12 million; Cash, credit, $12 million.
E. None of the above.
For the current period, a company's revenues and expenses are $480,000 and $420,000, respectively. What is the company's profit margin percentage for the current period?
A. 25.0%.
B. 87.5%.
C. 12.5%.
D. $60,000.
E. None of the above.
Purchase this Solution
Solution Summary
Response guides regarding adjusting entries are examined. Two adjusting entries are provided.
Solution Preview
An NBA basketball team sells season tickets worth $48 million before the basketball season starts late in the year. Assume this $48 million is debited to Cash and credited to Unearned Ticket Revenue. By the end of the calendar year, which also happens to be the end of the team's accounting period, 25% of ...
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.