Question
The National Amusement Park operates as a tourist attraction in India. The company adjusts its accounts at the end of each month. The selected accounts
The National Amusement Park operates as a tourist attraction in India. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on June 30. The adjusted trial balance shows the following:
Prepaid Rent $ 17,000
Buildings 42,000
Accumulated Depreciation—Buildings 8,250
Unearned Ticket Revenue 600
Other data:
- Three months' rent had been prepaid on June 1.
- The buildings are being depreciated at $9,000 per year.
- The unearned ticket revenue represents tickets sold for future park visits. The tickets were sold at $4.00 each on June 1. During June, twenty of the tickets were used by customers.
Instructions:
(a) Calculate the following:
- Monthly rent expense.
- The age of the fencing in months.
- The number of tickets sold on June 1.
(b) Prepare the adjusting entries that were made by the National Amusement Park on June 30.
Step by Step Solution
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Answer a Since 3 months rent has been prepaid on 1 st June and books are closed on 30 th June It mea...Get Instant Access to Expert-Tailored Solutions
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