The Poway Animal Encounters Operates a Drive Through Tourist Attraction

question 176

Essay

The Poway Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following: Other data:
1. Three months' rent had been prepaid on April 1.
2. The equipment is being depreciated at $6,000 per year.
3. The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at $4.00 each on April 1. During April, twenty of the tickets were used by customers.
Instructions
(a) Calculate the following:
1. Monthly rent expense.
2. The age of the equipment in months.
3. The number of tickets sold on April 1.
(b) Prepare the adjusting entries that were made by the Poway Animal Encounters on April 30.

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Definitions:

Budget Difference

The variance between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.

Static Budget

A budget that remains unchanged over a period of time, regardless of changes in factors like sales volume or revenue.

Manager's Effectiveness

It measures how well a manager achieves the goals and objectives of the business through efficient and effective use of resources.

Variable Manufacturing Costs

Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.