s. Package #1 is for all 10 home games. Package #2 is for the first 5 home games. Package #3 is for the last 5 home games. All season tickets are s
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Collect Cash for Season Tickets and the Monthly
Sports Enterprise, Inc. (SEI) owns a semi-pro football team. SEI sells three types of season ticket
packages.
Package #1 is for all 10 home games.
Package #2 is for the first 5 home games.
Package #3 is for the last 5 home games.
All season tickets are sold in September.
The following table shows the 2021 season ticket sales by season ticket package.
Package Total Season
Ticket Sales
#1 – all 10 Games $250,000
#2 – first 5 Games $30,000
#3 – last 5 Games $75,000
Total $355,000
The following table shows the:
Number of home games by month included in each season ticket package.
The % each month’s games are of the package’s total games.
Package #1 Package #2 Package #3
Games Included
in the Package
by Month
Games Included
in the Package
by Month
Games Included
in the Package
by Month
October 2 20% 2 40% 0 0%
November 4 40% 3 60% 1 20%
December 4 40% 0 0% 4 80%
Total 10 100% 5 100% 5 100%
SEI has the accounting policy that season ticket sales be initially recorded in a liability account.
The following is a partial list of the accounts in SEI’s General Ledger. These are the only
accounts you need for this problem.
Cash
Unearned Ticket Revenue (liability account)
Ticket Revenue (revenue account
Requirement 1
Prepare the General
previous page, all season ticket sales are made in the month of September. Date your General
Journal entry September 30, 2021.
Requirement 2
Prepare a “T” account analysis to determine the required October 31, 2021 adjustment to the
Unearned Ticket Revenue account. See the calculation under the “T” account analysis form
for how the should be Unearned Ticket Revenue balance is calculated.
Requirement 3
Prepare the October 31, 2021 General Journal adjusting entry for Unearned Ticket Revenue.
Requirement 4
Prepare a “T” account analysis to determine the required November 30, 2021 adjustment to the
Unearned Ticket Revenue account.
Requirement 5
Prepare the November 30, 2021 General Journal adjusting entry for Unearned Ticket Revenue.
Requirement 6
What would be the amount of Unearned Ticket Revenue shown on SEI’s
of November 30, 2021?
For the home games during November 2021, SEI’s total “day-of-the-game” ticket sales
were $650,000. What would be the total amount of Ticket Revenue on SEI’s Income
Statement for the period November 1 to November 30, 2021?
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