Recording unearned revenues a local theater company sells, Accounting Basics

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Recording unearned revenues a local theater company sells

Question: Recording Unearned Revenues A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the five-show season starts this week. Prepare the journal entries and show the related accounting equation effects arising from (a) the sale of the season tickets before the first show and (b) the revenue earned after the first show.

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Accounting Basics: Recording unearned revenues a local theater company sells

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Accounting Basics: Recording unearned revenues a local theater company sells

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