Southwestern City College sold season tickets for the 2010 football season for $160,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30

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Since the tickets were sold in advance, the revenue should be recognized gradually as the games are played. As of the end of September, only 3 out of 8 games have been played, so only $60,000 ($160,000/8 x 3) of the ticket revenue has been earned. The adjusting entry would be a debit to Unearned Ticket Revenue (a liability account) and a credit to Ticket Revenue for $60,000 to recognize the revenue that has been earned as of September 30.

Southwestern City College Sold Season Tickets for the 2010 Football