Exercise $4\mathrm{.}9($Algo$)$ Relationship of Adjusting Entries to Business Transactions $($LO$4-1,$ LO$4-2,$ LO$4-3,$ L$04-4,$ LO$4-5,$ LO$4-6,$ LO$4-7,$ LO$4-9)$

$8\mathrm{.}33$

points

Among the ledger accounts used by Rapid Speedway are the following: Prepaid Rent, Rent Expense, Unearned Admissions Revenue, Admissions Revenue, Prepaid Printing, Printing Expense, Concessions Receivable, and Concessions Revenue. For each of the following items, provide the journal entry $($if one is needed$)$ to record the initial transaction and provide the adjusting entry, eBook If any, required on May $31,$ assuming the company makes adjusting entries monthly.

Print

Required:

References

a$.$ On May $1,$ borrowed $$260,000$ cash from National Bank by issuing a $9$ percent note payable due in three months.

b$.$ On May $1,$ paid rent for six months beginning May $1$ at $$34,000$ per month.

c$.$ On May $2,$ sold season tickets for a total of $$810,000$ cash. The season includes $60$ racing days: $15$ in May, $20$ in June, and $25$ in July.

d$.$ On May $4,$ an agreement was reached with Snack$-$Bars, Incorporated, allowing that company to sell refreshments at the track In return for $10$ percent of the gross receipts from refreshment sales.