Charleswood Musical Theatre's season begins in November and ends in April with a different play each month. In October 2014, Charleswood sold 150 season tickets for the 2014-15 season which sold for $210 each. Charleswood records all season ticket sales as unearned revenue and adjusts its accounts on a monthly basis. The company has a March 31 fiscal year end.
Instructions
(a) Prepare the entry for sale of the season tickets. Date the entry October 31.
(b) Prepare any required adjusting entries on:
1. November 30, 2014
2. March 31, 2015
3. April 30, 2015
(c) Determine the balance (after any required adjustments) in Unearned Revenue on:
1. November 30, 2014
2. December 31, 2014
3. March 31, 2015