A professional sports team sells 4,080 season tickets before the season starts.

Question

A professional sports team sells 4,080 season tickets before the season starts. There are 17 games in the season and each season ticket costs an average of $410. A) Assuming the tickets are paid for at the time they are sold, what journal entry should be made for the sale of the season tickets when they are sold before the season starts? Dr Cr B)What effect does this entry have on the accounting equation? AssetsLiabilitiesEquity C) What journal entry should be made after the first game is played? Dr Cr D)What effect does this entry have on the accounting equation? Assets iailities+Equity

Explanation / Answer

a) Journal entry :

b) Accounting equation :

c) Journal entry :

d) Accounting equation :

Date accounts & explanation debit credit Cash (4080*410) 1672800 Unearned sales revenue 1672800 (To record unearned sales revenue)

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