Problem:
The Anderson Petting Zoo operates a drive-through tourist attraction in Arizona. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following:
Prepaid Rent $ 12,000
Fencing 42,000
Accumulated Depreciation Fencing 5,500
Unearned Ticket Revenue 600
Other data:
1. Three months' rent had been prepaid on April 1.
2. The fencing is being depreciated at $6,000 per year.
3. The unearned ticket revenue represents tickets sold for future zoo visits. The tickets were sold at $5.00 each on April 1. During April, twenty of the tickets were used by customers.
(a) Calculate the following:
1. Monthly rent expense.
2. The age of the fencing in months.
3. The number of tickets sold on April 1.
(b) Prepare the adjusting entries that were made by the Anderson Petting Zoo on April 30.