The Beaver Zoo operates a tourist attraction in Manitoba. The company settles its accounts at the end
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Question:
The Beaver Zoo operates a tourist attraction in Manitoba. The company settles its accounts at the end of each month. The selected accounts below reflect balances after the adjusting entries were prepared on April 30. The adjusted trial balance shows the following:
Prepaid Rent $8,000
Fences 30,000
Accumulated Depreciation – Fences 5,500
Unearned Income 500
Data used in the preparation of adjusting entries:
1. | On April 1, three months' rent had been paid in advance. |
2. | The fence depreciates over a five-year period. |
3. | Unearned revenue represents tickets sold for future visits to the zoo. Tickets were sold at $4.00 each on April 1st. During April, 25 of the tickets were used by customers. |
Instructions
a) | Calculate the following: |
1. | Monthly rental expenses. |
2. | The age of the fence in months. |
3. | The number of tickets sold on April 1. |
b) | Prepare the adjusting entries that Beaver Zoo made on April 30. |
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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