Ask Question
15 July, 01:27

A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season starts this week. (a) The sale of the season tickets before the first show. (b) The revenue from fulfilling the performance obligation by putting on the first show.

+1
Answers (1)
  1. 15 July, 02:31
    0
    Dr cash $375,000

    Cr unearned revenue $375,000

    Dr unearned revenue $37,500

    Cr revenue $37,500

    Explanation:

    The total amount realized from the sale of tickets is $375,000 ($250*1500)

    However, the cash proceeds should be debited to cash while it is also credited to unearned revenue

    The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500

    The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season starts this ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers