Question

Ticketsales, Inc., receives $7,720,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts.
Required:
Record the revenue earned for the first concert date of November 5.

Answer 1

Answer:

November 5

Dr Unearned Ticket Revenue $1,930,000

Cr Ticket Revenue $1,930,000

Explanation:

Preparation of the journal entry to Record the revenue earned for the first concert date of November 5.

Based on the information given if Ticketsales receives the amount of $7,720,000 cash in advance ticket sales for a four-date tour of Bon Jovi which means that assuming it represents one-fourth of the advance ticket sales the revenue earned for the first concert date of November 5 will be :

November 5

Dr Unearned Ticket Revenue $1,930,000

Cr Ticket Revenue $1,930,000

($7,720,000 x 1/4)

(To Record the revenue earned for the first concert date of November 5.)