Alpine, Inc. sells baseball tickets for professional baseball games. Cash receipts for baseball tickets are credited to Unearned Ticket Revenue. During 2010, Alpine collected $30,000 for a September, 2010 baseball game and $42,000 for a March, 2011 baseball game. The September game was played as scheduled, although $2,000 of tickets was refunded to fans that canceled because they had been permanently kicked out of the stadium for disorderly conduct. How much should be reported as Unearned Ticket Revenue at December 31, 2010?

Question

Quizplus · Accepted Answer

At December 31, 2010, the Unearned Ticket Revenue should only include the amount collected for the March 2011 game, which is $42,000, as the September game has already been played and the revenue recognized, minus the $2,000 refund.