The following ledger accounts are used by the Chicago Heights Dog Track: The following ledger accounts are
Question:
The following ledger accounts are used by the Chicago Heights Dog Track: The following ledger accounts are used by the Chicago Heights Dog Track:
Accounts Receivable
Interest Receivable
Prepaid Printing
Prepaid Rent Investment in CD Unearned
Admissions Revenue Interest
Payable Printing Expense
Rent Expense Interest
Expense Admissions Revenue
Concessions Revenue
Interest Revenue
Required:
For each of the following events, prepare the journal entry (if one is required) to record the initial transaction, and then prepare the adjusting entry, if any, required on September 30, the end of the quarterly accounting period. Narrations are not required. You may assume that the initial journal entries that recorded the prepaid expenses and unearned revenues transactions followed the traditional rather than the alternative (Appendix 3A) treatment.
(a) On August 1, paid rent on the track facility for nine months, $225,000
(b) On September 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 $840,000, and cash was received for that amount.
(c) On August 1, invested $200,000 cash in a three-month certificate of deposit from First National Bank. The annual interest rate on the CD was 996
(d) On September 5, schedules for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $3,000, paid in cash
(e) The Dog Track leases space to a food operator. The terms of the lease are that the food operator must pay the track 10% of the monthly gross receipts for food, payable on the first of the following month. The accountant for the food operator reported that gross receipts for September were $140,000
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson