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Problem: The following ledger accounts are used by the Blue Lakes Sports Team:
Accounts Payable
Prepaid Advertising
Prepaid Rent
Unearned Sales Revenue
Advertising Expense
Rent Expense
Sales Revenue
Intrusions: For each of the following (A B & C) journalize the transaction (if required) to record the payment on September 1, and then make any required adjusting entries at the end of the month.
A) September 1: Paid $210,000 for the three months of rent of a sports venue.
B) September 1: Blue Lakes sold season tickets for the next twelve months. Cash received from the sales was $970,000.
C) September 1: Blue Lakes borrowed $375,000, by signing a bank note at 8% interest. The note will be due in 3 months.
Financial Statement Analysis and Preparation
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