On December 31, 20X1, the Notes Receivable account at Eliassen Materials Corporation had a balance of $20,500, which represented a six-month, 12 percent note received from a customer on September 1. During the week ended June 7, 20X1, Breit Media received $49,000 from customers for subscriptions to its magazine Modern Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1. On October 1, 20X1, Namala Realty Company rented a commercial building to a new tenant and received $53,400 in advance to cover the rent for six months. Upon receipt, the $53,400 was recorded in the Unearned Rent account. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 40 home games, receiving $6,600,000. Upon receipt, the $6,600,000 was recorded in the Unearned Season Ticket Income account. At December 31, 20X1, the Mighty Bucks Hockey Club had played 5 home games. For each of the above independent situations, indicate the adjusting entry that must be made on the December 31, 20X1, worksheet assuming no previous adjusting entries have been made during the year.
On December 31, 20X1, the Notes Receivable account at Eliassen Materials Corporation had a balance of $20,500, which represented a six-month, 12 percent note received from a customer on September 1. During the week ended June 7, 20X1, Breit Media received $49,000 from customers for subscriptions to its magazine Modern Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1. On October 1, 20X1, Namala Realty Company rented a commercial building to a new tenant and received $53,400 in advance to cover the rent for six months. Upon receipt, the $53,400 was recorded in the Unearned Rent account. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 40 home games, receiving $6,600,000. Upon receipt, the $6,600,000 was recorded in the Unearned Season Ticket Income account. At December 31, 20X1, the Mighty Bucks Hockey Club had played 5 home games. For each of the above independent situations, indicate the adjusting entry that must be made on the December 31, 20X1, worksheet assuming no previous adjusting entries have been made during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
excersise
- On December 31, 20X1, the Notes Receivable account at Eliassen Materials Corporation had a balance of $20,500, which represented a six-month, 12 percent note received from a customer on September 1.
- During the week ended June 7, 20X1, Breit Media received $49,000 from customers for subscriptions to its magazine Modern Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1.
- On October 1, 20X1, Namala Realty Company rented a commercial building to a new tenant and received $53,400 in advance to cover the rent for six months. Upon receipt, the $53,400 was recorded in the Unearned Rent account.
- On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 40 home games, receiving $6,600,000. Upon receipt, the $6,600,000 was recorded in the Unearned Season Ticket Income account. At December 31, 20X1, the Mighty Bucks Hockey Club had played 5 home games.
For each of the above independent situations, indicate the adjusting entry that must be made on the December 31, 20X1, worksheet assuming no previous
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education