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Sagot :
Answer:
1.
Oct 31
Cash $5,000,000 Dr
Unearned Ticket Revenue $5,000,000 Cr
2.
Nov 5
Unearned Ticket Revenue $1,250,000 Dr
Ticket Revenue $1,250,000 Cr
Explanation:
1.
The ticket revenue received in advance is a liability and as the liability is increasing it will be credited as an unearned ticket revenue. We are receiving cash in advance so cash will be debited as asset is increasing.
2.
After the first concert, one fourth of the unearned ticket revenue has been earned so liability of unearned ticket revenue will be debited and revenue item represented by ticket revenue will be credited. The amount will be,
Ticket Revenue per concert = 5000000/4 = 1250000
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