Chapter $5$ Problem Set

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Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all$-$day adult lift ticket can be purchased for $$94.$ Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December $1$ through April $30.$ Ski West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December $31.$

$0\mathrm{.}4$ On November $6,2026,$ Ski West sells a season pass to Jake Lawson for $$531.$

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When should Ski West recognize revenue from the sale of its season passes?

What are the financial statement effects from the sale of the season pass on November $6,2026?$

What will be included in Ski West's $2026$ income statement and balance sheet related to the sale of the season pass to Jake Lawson?

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What will be included in Ski West's $2026$ income statement and balance sheet related to the sale of the season pass to Jake Lawson?

Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar.

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included in revenue

Amount

remaining balance in deferred revenue