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Question 2 : The following ledger accounts are used by Clover Race Track: Accounts Receivable Prepaid Printing Prepaid Rent Deferred Revenue Printing Expense Rent Expense

Question 2:
The following ledger accounts are used by Clover Race Track:
Accounts Receivable
Prepaid Printing
Prepaid Rent
Deferred Revenue
Printing Expense
Rent Expense
Admissions Revenue
Concessions Revenue
Instructions
For each of the following transactions, prepare the journal entry (if one is required) to record the
initial transaction and then prepare the adjusting entry, if any, required on September 30, the
end of the fiscal year.
(a) On September 1, paid rent on the track facility for three months, $240,000.
(b) On September 1, sold season tickets totalling $900,000 for admission to the racetrack. The
racing season is year-round with 25 racing days each month.
(c) On September 1, borrowed $150,000 from First Provincial Bank by issuing a 12% bank
loan payable due in three months.
(d) On September 5, schedules for 20 racing days in September, 25 racing days in October,
and 15 racing days in November were printed for $3,000.
(e) The accountant for the company that operates the concessions (food and drink stands)
reported that gross receipts for September were $140,000. Ten percent is due to Clover
Race Track and will be paid by October 10.
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