Charleston Yacht Club sells annual passes to its facilities. An annual pass costs $8,000 and is good for year-round use. On January 1, the company sells 90 passes and collects the cash. The entry on March 31 to record revenue is ________. (Do not round intermediary calculations, and round your final answer to the nearest whole dollar.)

Question

Quizplus · Accepted Answer

The correct entry on March 31 is to recognize the revenue earned for the first quarter. Since the passes are for a year, 3 months' worth of revenue is earned by March 31. The entry is to debit Unearned Revenue and credit Revenue for the amount earned, which is $\$180,000 \times \frac{3}{12} = \$45,000$.

Charleston Yacht Club Sells Annual Passes to Its Facilities Cash $180,000 Unearned Revenue$180,000\begin{array}{lrr} \text {Cash } &\$180,000\\ \text { Unearned Revenue} &&\$180,000\\\end{array}Cash Unearned Revenue​$180,000​$180,000​

Charleston Yacht Club Sells Annual Passes to Its Facilities $\begin{array}{lrr} \text {Cash } &\$180,000\\ \text { Unearned Revenue} &&\$180,000\\\end{array}$