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Sage Hill University sells 6,800 season basketball tickets at [tex]$\$[/tex]75[tex]$ each for its 10-game home schedule.

(a) Give the entry to record the sale of the season tickets.
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

| Account Titles and Explanation | Debit | Credit |
| ----------------------------- | ----- | ------ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square[tex]$ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square[tex]$ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square[tex]$ |

(b) Give the entry to record the revenue recognized after playing the first home game.
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

| Account Titles and Explanation | Debit | Credit |
| ----------------------------- | ----- | ------ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square[tex]$ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square[tex]$ |
| $[/tex]\square[tex]$ | $[/tex]\square[tex]$ | $[/tex]\square$ |

Sagot :

GinnyAnswer
Absolutely, let's solve this problem step-by-step.

### Part (a) Entry to Record Sale of the Season Tickets

When Sage Hill University sells 6,800 season basketball tickets at [tex]$75 each, we need to record the sale by increasing Cash and Unearned Ticket Revenue accounts. Unearned Ticket Revenue is a liability because the university is being paid in advance for services (games) it has not yet provided. Calculation: - Number of tickets: 6,800 - Price per ticket: $[/tex]75
- Total Revenue: [tex]\( 6,800 \, \text{tickets} \times \$75 \, \text{each} = \$510,000 \)[/tex]

Journal Entry:
- Debit: Cash [tex]$510,000 - Credit: Unearned Ticket Revenue $[/tex]510,000

Here is how you should write the journal entry:

#### Account Titles and Explanation
| | Debit | Credit |
| ----- | ----- | ----- |
| Cash | [tex]$510,000 | | | Unearned Ticket Revenue | | $[/tex]510,000 |

### Part (b) Entry to Record Revenue Recognized After Playing the First Home Game

After playing the first home game, the university needs to recognize part of the revenue because it has delivered part of the service it promised. Since there are 10 games, each game revenue is 1/10th of the total amount.

Calculation:
- Total Revenue from season tickets: [tex]$510,000 - Number of games: 10 - Revenue per game: \( \frac{\$[/tex]510,000}{10} = \[tex]$51,000 \) Journal Entry: - Debit: Unearned Ticket Revenue $[/tex]51,000
- Credit: Ticket Revenue [tex]$51,000 Here is how you should write the journal entry: #### Account Titles and Explanation | | Debit | Credit | | ------ | ------ | ------ | | Unearned Ticket Revenue | $[/tex]51,000 | |
| Ticket Revenue | | $51,000 |
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