The accounting department for Loud Noises Concerts (LNC) recorded the following transactions for the fiscal year ended April 30, 2009. LNC generates revenue by selling tickets for local concerts. 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 the LNC accounting department record some cash receipts as unearned revenues and others as earned revenues.

1. Explain the transaction or event that resulted in each item recorded on the worksheet.
2. Did LNC generate net income or net loss for the fiscal year ended April 30, 2009? How can you tell?
3. Prepare the income statement, statement of changes in shareholders’ equity, and statement of cash flows for the year ended April 30, 2009, and the balance sheet at April 30,2009.

  • CreatedSeptember 01, 2014
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