00:01
Hello, in this video, we're going to prepare and record entries.
00:09
Okay, so we have your transaction.
00:12
Washburn university sells 3 ,500 season basketball tickets at $80 each for its 10 -game home schedule.
00:22
Now, we will go into prepare an entry to record first the sale of the season tickets.
00:27
And secondly, the entry to record the revenue recognized after playing the first home game.
00:37
So to prepare the entry for the sale of the tickets, we debit cash and we credit unearned ticket revenue.
00:55
So by what amount? so since there are 3 ,500 season basketball tickets, so we multiply that to $80, which is the cost of each ticket.
01:17
And that would give us an answer of $280 ,000.
01:21
So you have it cash because you have received $280 ,000.
01:26
And then you credit on earned ticket revenue because, though you have already sold these tickets, you have not yet earned these tickets yet because at this moment, it is assumed that the game has not started.
01:45
Okay? so the ticket is still un -earned...