Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q2) (6 Marks) The Poway Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The
Q2) (6 Marks) The Poway Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following: Prepaid Rent Fencing Accumulated Depreciation-Fencing Unearned Ticket Revenue 12,000 30,000 5,500 400 Other data: 1. Three months' rent had been prepaid on April 1. 2. The fencing is being depreciated at 6,000 per year. 3. The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at 5.00 each on April 1. During April, twenty of the tickets were used by customers. Instructions (a) Calculate the following: 1. Monthly rent expense. 2. The age of the fencing in months. 3. The number of tickets sold on April 1. (b)Prepare the adjusting entries that were made by the Poway Animal Encounters on April 30
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started