A company pays $6,500 for two season tickets on September 1. If $2,500 is earned by December 31, the adjusting entry made at that time is debit Cash, $2,500 and credit Ticket Revenue, $2,500.

Question

Quizplus · Accepted Answer

The adjusting entry made at that time should be debit Unearned Ticket Revenue, $2,500 and credit Ticket Revenue, $2,500 since only a portion of the revenue has been earned by December 31.

A Company Pays $6,500 for Two Season Tickets on September