The Centurions baseball team sells a package of tickets for 55 games online for $5,500. Fans can purchase the tickets at any time, through their credit cards, although the season doesn't officially begin until April. It runs from April through October. The company has a bank line of credit based on revenues. The year end is June 30th. Revenue was recorded at time of sale.

Instructions

a. Who are the users of the financial statements and what are their financial reporting/ decision making needs?

b. Assume the company follows ASPE, provide a GAAP supported-case specific analysis.

c. Assume the company follows IFRS, provide a GAAP supported-case specific analysis.

d. Explain which the accounting framework you like best (i.e. IFRS or ASPE) and why? Based on this selection, recommend when the company should record revenue for this scenario and the impact your recommendation will have on the company financial statements.

e. Give the correcting journal entry needed based on your recommendation.