Analyze business transactions and prepare financial statements. (LO 1, 2, 3, 4) The accounting department for SummerFest Promotions recorded the following transactions for the fiscal year ended June 30, 2008. SummerFest Promotions generates revenue by selling tickets for local events such as concerts, fights, and sporting events. Sometimes tickets are sold in advance and sometimes customers will purchase their tickets the same day as the event. These types of transactions require that the SummerFest accounting department record some cash receipts as unearned revenues and others as earned revenues.

Required

a. Explain the transaction or event that resulted in each item recorded on the worksheet.

b. Did SummerFest Promotions generate net income or net loss for the fiscal year ended June 30, 2008? How can you tell?

c. Prepare the four financial statements at year-end.

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Assets Liabilities Shareholder's Equity Contributed Capital Retained Earnings Cash Accounts Office Prepaid Receivable Supplies Rent Buildings Accumulated Depreciation- P&E Accounts Salaries Payable Payable Unearned Rent Revenue Long-term Interest Notes Payable Payable a 150,000 Common Stock 150,000 Revenues Expenses Dividends b. 475 475 (18,000) 18,000 d. 375,000 e 16,000 f. (525) g h (475) 50,000 375,000 16,000 (475) L (10,000) J. (300) k. (7,000) L m. 11. (7,500) 0. 226 (2,000) 5,500 (625) 50,000 10,000 (300) (7,000) (225) (2,000) (7,500) (5,500)