Chapter 11, Problem 2E

On October 31, the Vermillion Igloos Hockey Club received $800,000 in cash in advance for season tickets for eight home games. The transaction was recorded as a debit to Cash and a credit to Unearned Admissions. By December 31, the end of the fiscal year, the team had played three home games and received an additional $450,000 cash admissions income at the gate.

1. a. Journalize the adjusting entry as of December 31.
2. b. List the title of the account and the related balance that will appear on the income statement.
3. c. List the title of the account and the related balance that will appear on the balance sheet.