Reference no: EM132523292

The following ledger accounts are used by the Heartland Race Track who uses calendar year as Accounting year.

Additional Information

I. On November 1, paid rent on the track facility for three months, $90,000.

II. On September-01, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $960,000.

III. On October 1, borrowed $120,000 from First National Bank by issuing a 6% note payable due in three months.

IV. On November 5, schedules for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.

V. Equipment costing $ 500,000 was purchased on Jan-01 Life of the equipment is estimated to be 5 years.

VI. The accountant for the concessions company reported that gross receipts for November were $140,000 10% percent is due to Heartland and will be remitted by December 10.

Required

Question a. For each of the following transactions above, Prepare adjusting entries for the month ended November 30 assume Heartland has a policy of adjusting accounts on monthly basis.

Question b. Adjusting entries in respect of I,II &III assume Heartland has a policy of adjusting accounts on yearly basis.