The Following Ledger Accounts Are Used by the Runway Race

question 165

Essay

The following ledger accounts are used by the Runway Race Track:
Cash
Accounts Receivable
Prepaid Printing
Prepaid Rent
Unearned Admissions Revenue
Note Payable
Interest payable
Admissions Revenue
Concessions Revenue
Interest Expense
Printing Expense
Rent Expense
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 November 30, the end of the fiscal year.
a. On November 1, paid rent on the track facility for three months, $105,000.
b. On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totalled $900,000.
c. On November 1, borrowed $150,000 from their bank by issuing a 6% note payable due in three months. Interest is payable at maturity.
d. On November 5, schedules for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,000.
e. The accountant for the concessions company reported that gross receipts for November were $140,000. Ten percent is due to Runway and will be remitted by December 10.

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Definitions:

Cartilage

Cartilage is a flexible, resilient connective tissue found in various parts of the body, providing support and cushioning at joints.

Blood Vessels

Tubes in the body through which blood flows, including arteries, veins, and capillaries.

Hyaluronic Acid

A natural substance found in the body, particularly in fluids in the eyes and joints, acting as a lubricant and shock absorber.

Lubricant

A lubricant is a substance used to reduce friction between surfaces in contact, minimizing wear and facilitating smooth movement.