Question

QS 11-3 Unearned revenue LO C2 

Ticketsales, Inc., receives $6,840,000 cash in advance ticket sales for a four-date tour of Bon Jovi, Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts. 

QS 11-3 Unearned revenue LO C2 Ticketsales, Inc., receives $6,840,000 cash in advance ticket sales for a four-date tour of Bon Jovi, Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts. View transaction list Journal entry worksheet 1 Record the cash receipt in advance of concerts. Note: Enter debits before credits General Journal Debit Credit Date Oct 31 Record entry Clear entry View general Journal

Answer 1

Solution:

Journal entries
S.no.	Account title	Debit	Credit
31-Oct	Cash Dr	$68,40,000
	To Unearned Ticket revenue		$68,40,000
05-Nov	Unearned Ticket revenue Dr ($6,840,000*1/4)	$17,10,000
	To Ticket Revenue		$17,10,000