Among the ledger accounts used by Glenwood Speedway are the following: Prepaid Rent, Rent Expense, Unearned Admissions Revenue, Admissions Revenue, Prepaid Printing, Printing Expense, Concessions Receivable, and Concessions Revenue. For each of the following items, provide the journal entry (if one is needed) to record the initial transaction and provide the initial transaction and provide the adjusting entry, if any, required on 31 May, the end of the fiscal year.
A. On I May borrowed $300,000 cash from National Bank by issuing a 12 percent note payable due in three months.
B. On 1 May paid rent for six months beginning 1 May at $30,000 per month.
C. On 2 May sold season tickets for a total of $910,000 cash. The season includes 70 racing days: 20 in May, 25 in June, and 25 in July.
D. On 4 May an agreement was reached with Snack-Bars Limited, allowing that company to sell refreshments at the track in return for 10 percent of the gross receipts from refreshment sales.