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.

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.

  • CreatedSeptember 01, 2014
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