The Following Ledger Accounts Are Used by Crawford Indoor Paintball

question 69

Essay

The following ledger accounts are used by Crawford Indoor Paintball Park:
Cash
Accounts Receivable
Prepaid Printing
Prepaid Rent
Unearned Admissions Revenue
Interest Payable
Interest Expense
Printing Expense
Rent Expense
Admissions Revenue
Concessions Revenue
Instructions
For each of the 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 indoor park facility for three months, $180,000.
b. On September 1, sold season tickets for admission to the indoor park. The tickets can be used for a period of one year. Season ticket sales totalled $900,000.
c. On September 1, borrowed $150,000 from First Canadian Bank by issuing a 5% note payable due in three months, interest due on maturity.
d. On September 6, schedules for 8 competition days in September, 10 days in October, and 7 competition days in November were printed for $3,000.
e. Concessions are operated by an independent company, who pays Crawford 10% of the gross receipts. The accountant for the concessions company reported that gross receipts for September were $140,000. The amount due to Crawford will be remitted by October 11.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Consumer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual market price they pay.

Positively Sloped

Describes a line on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.