Question

Larkspur University sells 4,800 season basketball tickets at $60 each for the entire 15-game home schedule. (a) Give the entry to record the sale of the season tickets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer:

The Journal entry is as follows:

Cash A/c                    Dr. $288,000

To Unearned basketball ticket revenue A/c     $288,000

(To record the sale of the season tickets)

Workings:

Given that,

Total number of tickets sold = 4,800

Selling price of ticket = $60 each

Cash = season basketball tickets sold × Selling price of each ticket

        =  4,800 tickets × $60 per ticket

        = $288,000