Need help with a T account.
Cash, Unearned Ticket Revenue, and Ticket Revenue.
a- sold 1500 season tickets at 30 each, received cash 45000.
b-an end of period adjustment is needed to recognize that 35000 in ticket revenue has been earned.

Question

Need help with a T account.
Cash, Unearned Ticket Revenue, and Ticket Revenue.
 a- sold 1500 season tickets at 30 each, received cash 45000.
b-an end of period adjustment is needed to recognize that 35000 in ticket revenue has been earned.

gw2011 · Answer

For (a): Debit Cash for 45,000 and Credit Unearned Ticket Revenue for 45,000 because Cash is an asset and you are increasing it and Unearned Ticket Revenue is a liability and you are increasing it also.

For (b): Debit Unearned Ticket Revenue for 35,000 and Credit Ticket Revenue for 35,000 because Unearned Ticket Revenue is a liability and you are decreasing it and Ticket Revenue is a revenue and you are increasing it.