Question: Recording Initial Transactions and Subsequent Adjustments During the month of September, Texas Go-Kart Company had the following business activities:
a. Paid rent on September 1 on the track facility for six months at a total cost of $12,000.
b. Sold season tickets on September 1 for 12-month admission to the race track. Season ticket sales totaled $60,000.
c. Reserved the race track on September 1 for a private organization that will use the track one day per month beginning on September 15 for $2,000, to be paid in the following month.
d. Hired a new manager on September 1 at a monthly salary of $3,000 to be paid the first Monday following the end of the month. The manager started on September 2.
Required: Using the following table, prepare
1. The journal entry, if any, required to record each of the initial business activities on September 1.
2. The adjusting journal entry, if any, required on September 30.