Omega college sells seasonal tickets for 4 home basketball gamesfor $15. For the

Question

Omega college sells seasonal tickets for 4 home basketball gamesfor $15. For the season of 2008, 5000 tickets had been sold. Answerthe following.

* Come up with a journal entry (or you may use horizontal model) toshow:
1. effect of hosting the basketball game
2. effect of sale of season tickets

* where in the balance sheet would you classify the a/c balancerepresenting funds received for unplayed games. Assumption: omegacollege uses same accounting & financial reporting proceduresof business.

Kindly explain each solution in detail.

Explanation / Answer

When receiving funds for season ticket sales 2. Cash   (15x5000)      45000          Liability orPayable a/c       45000 1. Each game will result in an entry :      Liabilty or payable  (45000/4) 11,250         Incomea/c                                           11,250 **Classify the a/c balance representing funds received for unplayedgames in the liability section.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.