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 $10.$