Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 56

Unearned revenues—ticket sales Kirkland Theater sells season tickets for six events at a price of $252. For the 2010 season, 1,200 season tickets were sold.

Required:

a. Use the horizontal model (or write the journal entry) to show the effect of the sale of the season tickets.

---

b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.

---

c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?

Step 1 of 6

Unearned revenues – Ticket sales:

Unearned revenues:

These are deposits received by customers for goods and services that the company has not yet delivered or for which the business has not so far started to incur the cost for delivery.