Question

View Policies Current Attempt in Progress For each of the following transactions below, prepare the journal entry if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) (a) On September 1, paid rent on the track facility for three months, $210,000 (b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month Season ticket sales totaled $900,000 c) On September 1, borrowed $350,000 from First National Bank by issuing a 9% note payable due in three months. tch On September 5, programs for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $3,600. le) The accountant for the concessions company reported that gross receipts for September were $150,000. Ten percent is due to the track and will be remitted by October 10, Debit No. Account Titles and Explanation (a) Journal Entry: Credit Adjusting Entry: (b) Journal Entry: Adjusting Entry:

Answer 1

Ans:-

No	Accounts Titles and Explanation	Debit($)	Credit($)
a)	Journal Entry :
	Prepaid Rent	210000
	To Cash		210000
	Adjusting Entry :
	Rent Expense	70000
	To Prepaid Rent [210000 / 3]		70000
b)	Journal Entry:
	Cash	900000
	To Unearned Sales Revenue		900000
	Adjusting Entry:
	Unearned Sales Revenue	75000
	To Sales Revenue[900000 / 12]		75000
c)	Journal Entry :
	Cash	350000
	To Note Payable		350000
	Adjusting Entry:
	Interest Expense	2625
	To Interest Payable [350000 * 9%] / 12		2625
d)	Journal Entry:
	Prepaid Advertising	3600
	To Cash		3600
	Adjusting Entry:
	Advertising Expense	1200
	To Prepaid Advertising [ (3600 * 20 ) / 60]		1200
e)	Journal Entry :
	No Entry
	Adjusting Entry:
	Accounts Receivable	15000
	To Sales Revenue		15000