National Champions University has a football stadium that seats up to 80,000 fans. Details include: Six home games each year. Season passes are sold for $400 each ($100 per game). All 60,000 season passes are sold over the period January through August (prior to the season). Cash is received at the time of the sale. The six home games consist of two in September, three in October, and one in November Cash Received, Deferred Revenue and Revenue Recognized $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Received: Season Pass Sales Sales Revenue Recognized Deferred Revenue Click here to open graph in separate window. The bar graphs show the total cash received from season pass sales and sales revenue recognized by the university each month. The line graph plots the balance of the Deferred Revenue account over the year. Answer the following questions. Required: 1. In which month were the most season passes sold? 2. In which month were the most games played? 3. In which month was the most sales revenue recognized? 4. Based on the graph, which statement best summarizes when revenue is recognized? Sa. In July, cash collected from season pass sales was $3,200,000 (8,000 passes sold $400 per season pass). Record the entry for the month of July for cash collected from season pass sales. 5b. What happens to the balance of Deferred Revenue when cash is received for a season pass prior to the season? 5c. What is the total amount of Deferred Revenue by the end of August once all 60,000 season passes are sold for $400 each? 6a. In September, two home games were played. Record the entry related to season passes for the month of September (Hint Two home games represent one-third of the six home games for the season). 6b. What happens to the balance of Deferred Revenue when games are played? 6. What will be the balance of Deferred Revenue after the final home game is played in November? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg Rea SA Reg 58 Rea SC Reg 6 Reg 66 Regoc In which month were the most season passes sold? In which month were the most season passes sold? April Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4 Reg SA Reg 5B Reg SC Req 6A Reg 68 Req 6C In which month were the most games played? In which month were the most games played? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5A Reg 58 Reg 5C Reg 6A Reg 6B Reg 6C In which month was the most sales revenue recognized? In which month was the most sales revenue recognized? October Reg 1 Reg 2 Reg 3 Taeg 4 Reg SA Reg 5B Reg 5C Reg 6A Reg 6B Reg 6C Based on the graph, which statement best summarizes when revenue is recognized? Revenue is recognized as cash is received Revenue is recognized as games are played Revenue is recognized evenly over the year Revenue is recognized evenly over the season Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Req 5B Reg 5C Req 6A Reg 6B Req 6C In July, cash collected from season pass sales was $3,200,000 (8,000 passes sold Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg SA Reg 5B Reg 5C Req 6A Reg 6B Req 6C What is the total amount of Deferred Revenue by the end of August once all 60,000 season passes are sold for $400 each? Deferred Revenue $ 24,000,000 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 5B Req 5C Req 6A Req 68 Reg 6C In September, two home games were played. Record the entry related to season passes for the month of September (Hint: Two home games represent one-third of the six home games for the season). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry related to season passes for the month of September. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 5B Reg 5C Reg 6A Reg 6B Req 6C What happens to the balance of Deferred Revenue when games are played? O Increase Decrease O No Effect Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req SA Reg 5B Reg 5C Req 6A Reg 6B Req 6C What will be the balance of Deferred Revenue after the final home game is played in November? Deferred Revenue 0