The Shins, a Minor League Baseball Team, Prepare Financial Statements

question 235

Essay

The Shins, a minor league baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in March the team engaged in the following transactions:
(a) Paid $210,000 to Kansas City as advance rent for use of Kansas City Stadium for the six month period April 1 through September 30.
(b) Collected $450,000 cash from sales of season tickets for the team's 20 home games. This amount was credited to Unearned Ticket Revenue.
During the month of April, the Shins played four home games and five road games.
Instructions
Prepare the adjusting entries required at April 30 for the transactions above.

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Definitions:

Foreign Exchange Risk

The potential for financial losses due to changes in exchange rates affecting the value of foreign-currency-denominated assets and liabilities.

Foreign Exchange Gain

Foreign Exchange Gain arises when a currency transaction results in receiving or paying fewer units of the home currency than initially anticipated due to exchange rate movements.

Option Strike Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Spot Rate

The current market price used for immediate settlement of a currency, security, or commodity transaction.