QUESTION

Uptown Theatre has customers who prepay a total of $$1,000$ for season tickets to attend five upcoming shows. Uptown Dinner Theatre collects the $$1,000$ in advance before the shows are performed.

After three shows are performed, what should Uptown Theatre report on its income statement assuming it used the accrual basis accounting method?

ANSWER

Service Revenue of $$1,000$

Cash of $$1,000$

Cash of $$600$

Service Revenue of $$600$

I DON'T KNOWYET