The Moose Zoo Operates a Drive Through Tourist Attraction in Manitoba

question 12

Essay

The Moose Zoo operates a drive through tourist attraction in Manitoba. 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 fencing is being depreciated over a five year period.
3. The unearned ticket revenue represents tickets sold for future zoo visits. The tickets were sold at $4.00 each on April 1. During April, twenty-five of the tickets were used by customers.
Instructions
a. Calculate the following:
1. Monthly rent expense.
2. The age of the fencing in months.
3. The number of tickets sold on April 1.
b. Prepare the adjusting entries that were made by the Moose Zoo on April 30.

---

Definitions:

Budgeted Production

An estimate of the number of units that must be produced during a specific period to meet expected sales and inventory levels.

Material Costs

The costs associated with the raw materials and components used in creating a product.

Production Budget

An estimate of the total cost of production that includes direct labor, materials, and overhead expenses for a specific period.

Budgeted Sales

Projected sales amount estimated for a future period, often used in financial planning and performance evaluation.