The Following Ledger Accounts Are Used by the Chicago Heights

question 106

Essay

The following ledger accounts are used by the Chicago Heights Dog Track:
Accounts Receivable
Prepaid Printing
Prepaid Rent
Unearned Admissions Revenue
Printing Expense
Rent Expense
Admissions Revenue
Concessions Revenue
Instructions
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year.
(a) On September 1, paid rent on the track facility for three months, $180,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000.
(c) On September 1, borrowed $300,000 from First National Bank by issuing a 9% note payable due in three months.
(d) On September 5, schedules for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $2,400.
(e) The accountant for the concessions company reported that gross receipts for September were $140,000. Ten percent is due to the track and will be remitted by October 10.

---

Definitions:

Personal Income Tax

A tax levied on the income of individuals, which varies according to the income level and financial situation of the taxpayer.

Withdrawing

The act of removing or pulling back from a commitment, activity, bank account, or legal proceeding.

Income

The monetary payment received for the provision of goods, services, or labor from one individual or entity to another.

Price of Food

The cost associated with purchasing food items, which can fluctuate based on factors like seasonality, demand, and agricultural productivity.