The Following Ledger Accounts Are Used by the Heartland Race

question 235

Essay

The following ledger accounts are used by the Heartland Race Track:
Accounts Receivable
Prepaid Advertising
Prepaid Rent
Unearned Sales Revenue
Sales Revenue
Advertising Expense
Rent Expense
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 November 30, the end of the fiscal year.
(a) On November 1, paid rent on the track facility for three months, $150,000.
(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 totaled $960,000.
(c) On November 1, borrowed $250,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On November 5, programs 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 Heartland and will be remitted by December 10.

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Definitions:

New Information

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Sensorimotor Period

A stage in Piaget's theory of cognitive development, occurring from birth to approximately age 2, where infants learn about the world through their senses and actions.

Symbolic Representation

A method of representing ideas, objects, or processes through symbols or imagery rather than literal or direct representation.

Intentional Action

Behavior performed with a goal in mind, involving cognitive processes such as planning and decision-making.