Prepare the adjusting entries required at April

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Question - The Monks, a minor league baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in March the team engaged in the following transactions:

(a) Paid $240,000 to San Diego as advance rent for use of San Diego Stadium for the six month period April 1 through September 30.

(b) Collected $480,000 cash from sales of season tickets for the team's 20 home games. This amount was credited to Unearned Ticket Revenue.

Required -

1. During the month of April, the Monks played five home games and four road games.

2. Prepare the adjusting entries required at April 30 for the transactions above.

Reference no: EM132480619

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