The accounting department for Entertainment Activities, Inc., recorded the following journal entries for the fiscal year ended
Question:
The accounting department for Entertainment Activities, Inc., recorded the following journal entries for the fiscal year ended June 30, 2012:
Entertainment Activities generates revenue by selling tickets for local events such as concerts, fights, and sporting events. Sometimes tickets are sold in advance and sometimes customers will purchase their tickets the same day as the event. These types of transactions require that Entertainment Activities’ accounting department record some cash receipts as unearned revenues and others as earned revenues.
Requirements
1. Explain the transaction or event that resulted in each journal entry.
2. Post entries (a) through (o) to T-accounts and calculate the balance in each account.
3. Did Entertainment Activities generate net income or net loss for the fiscal year ended June 30, 2012? How can you tell?
4. Prepare the four financial statements required at year end.
5. Prepare the closingentries.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers