Adjusting Entries: Unearned Revenue Video Lessons

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Problem: The Booker Theater offered books of theater tickets to its patrons at $30 per book. Each book contained a certain number of tickets to future performances. During the current period 1,000 books were sold for $30,000 and this amount was credited to Unearned Ticket Revenue. At the end of the period it was determined that $10,000 worth of book tickets had been used by customers attending performances. The appropriate adjusting entry at the end of the period would be: a. Debit Ticket Revenue $20,000 and credit Unearned Ticket Revenue $20,000 b. Debit Ticket Revenue $10,000 and credit Unearned Ticket Revenue $10,000. c. Debit Unearned Ticket Revenue $20,000 and credit Ticket Revenue $20,000. d. Debit Unearned Ticket Revenue $10,000 and credit Ticket Revenue $10,000.

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Problem Details

The Booker Theater offered books of theater tickets to its patrons at $30 per book. Each book contained a certain number of tickets to future performances. During the current period 1,000 books were sold for $30,000 and this amount was credited to Unearned Ticket Revenue. At the end of the period it was determined that $10,000 worth of book tickets had been used by customers attending performances. The appropriate adjusting entry at the end of the period would be:

a. Debit Ticket Revenue $20,000 and credit Unearned Ticket Revenue $20,000

b. Debit Ticket Revenue $10,000 and credit Unearned Ticket Revenue $10,000.

c. Debit Unearned Ticket Revenue $20,000 and credit Ticket Revenue $20,000.

d. Debit Unearned Ticket Revenue $10,000 and credit Ticket Revenue $10,000.

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Our tutors rated the difficulty ofThe Booker Theater offered books of theater tickets to its p...as medium difficulty.