The Following Ledger Accounts Are Used by the Clover Race

question 70

Essay

The following ledger accounts are used by the Clover Race Track:Accounts ReceivablePrepaid PrintingPrepaid RentUnearned RevenuePrinting ExpenseRent ExpenseAdmissions RevenueConcessions RevenueInstructionsFor each of the following transactions, 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, $240,000.
b. On September 1, sold season tickets totalling $900,000 for admission to the racetrack. The racing season is year-round with 25 racing days each month.
c. On September 1, borrowed $150,000 from First Provincial Bank by issuing a 12% bank loan 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 $3,000.
(e) The accountant for the company that operates the concessions (food and drink stands) reported that gross receipts for September were $140,000. Ten percent is due to Clover Race Track and will be paid by October 10.

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Definitions:

Integrated Production

A system of production where various processes are interconnected and work harmoniously to improve efficiency and output.

Descendants

Individuals who are direct offspring or belong to subsequent generations of a particular ancestor or group of ancestors.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Oligopolist

A firm or entity that operates in a market structure characterized by a small number of firms dominating the market, leading to limited competition.