Dale Golf Course, Inc., operates golf courses in South Carolina. A round of golf at one of

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Dale Golf Course, Inc., operates golf courses in South Carolina. A round of golf at one of Dale’s courses costs $75. Dale also sells one-year season passes, good for unlimited rounds of golf for a single golfer, for $3,000. In 20X1, Dale’s first year of operations, it sold 300 passes in the first quarter, 150 passes in the second quarter, 100 passes in the third quarter, and 450 passes in the fourth quarter. Assume all passes were sold on the last day of the quarter (i.e., March 31, June 30, September 30, and December 31). Dale expects its business to be seasonal, with 40% of its total annual rounds played in the first quarter, 15% in the second quarter, 10% in the third quarter, and 35% in the fourth quarter, due to the large number of northerners fleeing the cold during the late fall and winter months.


Required:

Prepare the journal entry to record the sale of passes and the recognition of revenue in 20X1.

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Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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