Answer the following by choosing one of the phrases in the ( ).

(1)	On March 15, a customer pays $3,133 for ten 4-day passes to Disney World for a vacation that will take place June14. Did Disney earn the revenue on March 15?
(2)	On July 1, The Walt Disney Company prepays $60,000 in rent for a Disney Store building for the next six months. Did Disney incur the expense on July 1? If not, when will the company recognize rent expense?

(1) On March 15, a customer pays $3,133 for ten 4-day passes to Disney World for a vacation that will take place June 14.

Did Disney earn the revenue on March 15?

(no or yes)

The Walt Disney Company

(has or has not)

earned revenue on March 15. The Walt Disney Company earns the revenue

(when it recieves cash from the customer or when the customers go through the gates and a park employee scans the barcodes on the tickets)

The Walt Disney Company must recognize

( a liability to the customer for 4 days of admission to disney world or revenue when the customer pays for the 4-day pass)

(2) On July 1, The Walt Disney Company prepays $60,000 in rent for a Disney Store building for the next six months. Did Disney incur the expense on July 1? If not, when will the company recognize rent expense?

(no or yes)

The Walt Disney Company

(has or has not)

incurred an expense on July 1. This payment of rent is an

(asset or expense )

because Disney has

(aquired the use of a store location in the future or already made the cash payment )

Rent expense will be recognized

(during each of the next 6 months as the store is occupied or on july 1 when the advanced payment is made).