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. D Package #2 is for the first 5 home games. D 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. Total Season Package Ticket Sales 1-al 10 Games #2-frat 5 Games $250,000 $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. D 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 20% 40% 0% November 4 40% 3 60% 20% December 4. 40% 0% 4. 80% Total 10 100% 5 100% 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. D Cash D Unearned Ticket Revenue (liability account)

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. D Package #2 is for the first 5 home games. D 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. Total Season Package Ticket Sales 1-al 10 Games #2-frat 5 Games $250,000 $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. D 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 20% 40% 0% November 4 40% 3 60% 20% December 4. 40% 0% 4. 80% Total 10 100% 5 100% 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. D Cash D Unearned Ticket Revenue (liability account)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

2:30
il LTE O
wwn eony Adjusting Entry
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.
D Package #2 is for the first 5 home games.
> Package
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.
Total Season
Package
Ticket Sales
#1- all 10 Games
#2 - first 5 Games.
$250,000
$30,000
#3 - last 5 Games
$75,000
Total
$355.000
The following table shows the:
D Number of home games by month included in each season ticket package.
D The % each month's games are of the package's total games.
Package #1
Games Included
in the Package
by Month
Package #2
Package #3
Games Included
in the Package
by Month
Games Included
in the Package
by Month
October
20%
2
40%
0%
November
4
40%
3
60%
20%
December
4
40%
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.
D Cash
D Unearned Ticket Revenue (lNability account)
Ticket Revenue (rovenue account

Shif
Requirement 4 -- "T" Account Analysis for the November 30 adjusting entry
"T" Account Analysis for Asset and Liability Accounts
Account Name →
Ctrl
Unearned Ticket Revenue
Debit
Credit
(1) What is the current balance?
(3) What adjustment is required to
adjust from the current balance
to the should be balance?
(2) What should be the balance?
Calculation of Unearned Ticket Revenue as of November 30
% of Games in
the Package to
be Played in
Unearned
Total Season
Ticket
Package
Ticket Sales
December
Revenue
%3D
# 1
# 2
# 3
Total
Requirement 5 -- November 30 Unearned Ticket Revenue adjusting entry
Date
Account Name
Debit
Credit
Requirement 6
Amount of Unearned Ticket Revenue on the November 30 Balance Sheet
Amount of Ticket Revenue on the November 1 to November 30 Income Statement
Remember that this includes $650,000 "day-of-the-game" ticket sales.

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