CHAPTER 3 Ex. 272 The following ledger accounts are used by the Heartland Race Track: Accounts...

 

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CHAPTER 3 Ex. 272 The following ledger accounts are used by the Heartland Race Track: Accounts Receivable Prepaid Printing Prepaid Rent Unearned Admissions Revenue Admissions Revenue Concessions Revenue Printing Expense Rent Expense Instructions: For each of the following transactions below, prepare the journal entry (if one is required) to rec- ord the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year. (a) On November 1, paid rent on the track facility for three months, $90,000. (b) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $960,000. (c) On November 1, borrowed $120,000 from First National Bank by issuing a 6% note payable due in three months. (d) On November 5, schedules for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600. (e) The accountant for the concessions company reported that gross receipts for November were $140,000. Ten percent is due to Heartland and will be remitted by December 10. CHAPTER 3 Ex. 272 The following ledger accounts are used by the Heartland Race Track: Accounts Receivable Prepaid Printing Prepaid Rent Unearned Admissions Revenue Admissions Revenue Concessions Revenue Printing Expense Rent Expense Instructions: For each of the following transactions below, prepare the journal entry (if one is required) to rec- ord the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year. (a) On November 1, paid rent on the track facility for three months, $90,000. (b) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $960,000. (c) On November 1, borrowed $120,000 from First National Bank by issuing a 6% note payable due in three months. (d) On November 5, schedules for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600. (e) The accountant for the concessions company reported that gross receipts for November were $140,000. Ten percent is due to Heartland and will be remitted by December 10.

Answer rating: 100% (QA)

Journal entries Date Particulars Debit Credit Nov 1 prepaid rent 90000 To bank 900... View the full answer