Waterways Theater sells season tickets for six events at a price of $48. For the 2010 season, 3,880 season tickets were sold. rev: 05-10-2011 23.value: 15.00 points You did NOT receive

Waterways Theater sells season tickets for six events at a price of $48. For the 2010 season, 3,880 season tickets were sold.

rev: 05-10-2011

23.value:

15.00 points

You did NOT receive full credit for this question in previous attempt.

Required:

(a)

Prepare the horizontal model to show the effect of the sale of the season tickets. (+ for increase, – for decrease and NE for no effect).

Balance Sheet Income Statement

Assets = Liabilities + Owners’ Equity ← Net income = Revenues – Expenses

rev: 05-10-2011

eBook Linkreferencesprevious attempt

24.value:

15.00 points

You did NOT receive full credit for this question in previous attempt.

(b)

Record the journal entry to show the effect of the sale of the season tickets. (Omit the “$” sign in your response.)

General Journal Debit Credit

rev: 05-10-2011

eBook Linkreferencesprevious attempt

25.value:

15.00 points

You did NOT receive full credit for this question in previous attempt.

(c)

Prepare the horizontal model to show the effect of presenting an event. (+ for increase, – for decrease and NE f..or no effect).

Balance Sheet Income Statement

Assets = Liabilities + Owners’ Equity ← Net income = Revenues – Expenses

rev: 05-10-2011

eBook Linkreferencesprevious attempt

26.value:

15.00 points

You did NOT receive full credit for this question in previous attempt.

(d)

Record the journal entry to show the effect of presenting an event. (Omit the “$” sign in your response.)

General Journal Debit Credit

rev: 05-10-2011

eBook Linkreferencesprevious attempt

27.value:

5.00 points

You did NOT receive full credit for this question in previous attempt.

(c)

Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?

rev: 05-10-2011

Current asset

Current liability

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