Question

During the month of September, the Texas Go-Kart Company had the following business activities 6 a On September 1, paid rent on the track facility for six months at a total cost of $9,000 b. On September 1, received $19.200 for season tickets for 12 month admission to the race track c On September 1, booked the race track for a private organization that will use the track one day per month for $2,300 each time, to be paid in the following month. The organization uses the track on September 30. d on September 1, hired a new manager at a monthly salary of $2,600, to be paid the first Monday following the end of the month. 17 points eBook Print Required: 1. Prepare the journal entry, if any, required to record each of the initial business activities on September 1 2. Prepare the adjusting journal entries, if any, required on September 30, Complete this question by entering your answers in the tabs below. Required Required 2 Prepare the journal entry, if any, required to record each of the initial business activities on September 1. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet ©

Answer 1

Credit Preparation of Journal Entries Requiremnt 1 Date General Journal Debit Sep-01 Prepaid Rent $ 9,000 Cash $ 9,000 $ 49,200 Sep-01 Cash Unearned Revenue $ 49,200 Sep-01 NO journal entry required Sep-01 NO journal entry required Credit Requiremnt 2 Preparation of Journal Entries Date General Journal Debit Sep-30 Rent expense $ 1,500 Prepaid rent $ 1,500 $ 4,100 Sep-30 Unearned Revenue Sales Revenue $ 4,100 $ 2,300 Sep-30 Accounts Receivable Rent Revenue $ 2,300 $ 2,600 Sep-30 Salaries expense Salaries payable $ 2,600 * Kindly Comment down for any clarifications/ queries and please upvote.