Box Office Corporation sells tickets for cabaret shows, Broadway shows, concerts and other live performances in Toronto. It packages tickets into a season pass good for ten events and customers can select from various theme packages. Each pass costs From $800 to $2,000 depending on seat selection. The average pass cost in the year was $1,510. Box Office sold 450 passes this year. At the end of the year the passes not redeemed (used) are expired and deemed forfeited. Once the season is over all passes expire and cannot be used to grant access to venues.

Required 1: Assume there were no other transactions in the year and that 90% of passes have been redeemed, how much is the accrued liability just before doing the AJE of end of the season? $

Required 2: Assume there were no other transactions in the year and that 96% of passes have been redeemed, how much is the balance of Advances from Customers just before doing the AJE of end of the season? $

Required 3: Assume there were no other transactions in the year and that 92% of passes have been redeemed, how much is the revenue for the season reported in the Income Statement? $

Answer rating: 100% (QA)

Before we calculate the accrued liability balance of Advances from Customers and revenue for the sea... View the full answer