Mercury Company Sells Tickets in Advance for Its Weekly Productions

question 159

Multiple Choice

Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue.At the end of each month,the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1,the Unearned Revenue account had a credit balance of $5,000.During March,Mercury sold 500 tickets at $40 each,and 450 tickets were used during the month.What is the balance in Unearned Revenue at the end of March?

• A) credit balance of $7,000
• B) debit balance of $5,000
• C) credit balance of $5,000
• D) debit balance of $7,000

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Definitions:

Moderate Tasks

Tasks that are of medium difficulty, neither too easy nor too hard, requiring a reasonable level of skill or effort.

Need For Achievement

A psychological drive or motivation to accomplish goals, excel, and achieve competence.

n Ach

Need for achievement, a motivational term in psychology that represents an individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Work Motivation

The conditions and processes responsible for the arousal, direction, magnitude, and maintenance of effort of workers on the job.