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The Golden Goals, a professional soccer team, prepares financial statements on a monthly basis.
The soccer season begins in May, but in April the team engaged in the following transactions:
1: Paid $1,200,000 to the municipal stadium as advance rent for use of the facilities for the five month period from May 1 through September 30. This payment was initially recorded as Prepaid Rent.
2: Collected $4,500,000 cash from the sale of season tickets for the team 's home games. The entire amount was initially recorded as Unearned Ticket Revenue. During the month of May the Golden goals played several home games at which $148,000 of the season tickets sold in April were used by fans.
Financial Statement Analysis and Preparation
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