The Metropolitan Opera Association, Inc., was founded in 1883 and is widely regarded as one of the world's greatest opera companies. The Metropolitan's performance run from September to May, and the season may consisted of more than two dozen different operas. Many of the opera's loyal subscribers purchase tickets for the upcoming season prior to the end of the opera's fiscal year end at July 31. In its annual report, the Metropolitan recognizes a Deferred Revenue liability that is defined in their footnotes as follows. "Advance ticket sales, representing the receipt of payments for ticket sales for the net opera season, are reported as deferred revenue in the consolidated balance sheets." Ticket sales are recognized as box office revenue "on a specific performance basis."
The Metropolitan Opera Association, Inc., was founded in 1883 and is widely regarded as one of the world's greatest opera companies. The Metropolitan's performance run from September to May, and the season may consisted of more than two dozen different operas. Many of the opera's loyal subscribers purchase tickets for the upcoming season prior to the end of the opera's fiscal year end at July 31. In its annual report, the Metropolitan recognizes a Deferred Revenue liability that is defined in their footnotes as follows. "Advance ticket sales, representing the receipt of payments for ticket sales for the net opera season, are reported as deferred revenue in the consolidated balance sheets." Ticket sales are recognized as box office revenue "on a specific performance basis."
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Metropolitan Opera Association, Inc., was founded in 1883 and is widely regarded as one of the world's greatest
opera companies. The Metropolitan's performance run from September to May, and the season may consisted of more
than two dozen different operas. Many of the opera's loyal subscribers purchase tickets for the upcoming season prior to
the end of the opera's fiscal year end at July 31. In its annual report, the Metropolitan recognizes a Deferred Revenue
liability that is defined in their footnotes as follows. "Advance ticket sales, representing the receipt of payments for ticket
sales for the net opera season, are reported as deferred revenue in the consolidated balance sheets." Ticket sales are
recognized as box office revenue "on a specific performance basis."
Fiscal year
Revenues
ended July 31 (Box office and tours) Deferred revenue
2017
$79,663
2016
78,824
2015
81,857
2014
82,187
Show Transcribed Text
Recreate the summary journal entries to recognize ticket sales (box office and tours) for The Metropolitan Opera's fiscal
year 2017 and advance sales for the fiscal year 2018 season. (Assume that advance ticket sales extend no further than the
next year's opera season.)
Cash
J
General Journal
Description
To record revenue for 2017 season
0
0
0
•
To record advance purchases for 2010 season.
Pleate antwer all parts of the question.
Ĉ
Debit
0
0
0
0
0
Show Transcribed Text
Credit
0
0
0
$38,384
41,948
43,021
36,233
0
0
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