The National Amusement Park operates as a tourist attraction in India. The company adjusts its accounts at
Question:
The National Amusement Park operates as a tourist attraction in India. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on June 30. The adjusted trial balance shows the following:
Prepaid Rent $ 17,000
Buildings 42,000
Accumulated DepreciationāBuildings 8,250
Unearned Ticket Revenue 600
Other data:
- Three months' rent had been prepaid on June 1.
- The buildings are being depreciated at $9,000 per year.
- The unearned ticket revenue represents tickets sold for future park visits. The tickets were sold at $4.00 each on June 1. During June, twenty of the tickets were used by customers.
Instructions:
(a) Calculate the following:
- Monthly rent expense.
- The age of the fencing in months.
- The number of tickets sold on June 1.
(b) Prepare the adjusting entries that were made by the National Amusement Park on June 30.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello