The Ogden Theater sells season tickets for 4 events at a price of $78 for the season. For the upcoming season, 3,760 season ticket packages were sold. No events have occurred.

Required:

a. Show the effect of the above on the accounting equation. Indicate what accounts are impacted, the type of account (asset, liability, equity, revenue, expense) the direction (+/-), and the amount.

b. Record the journal entry to show the effect of the sale of season tickets.

c. Now, assume the first event occurs and show the effect on the accounting equation. Assume each of the 4 events during the season are valued equally and earn a 25% proportion. Indicate what accounts are impacted, the type of account (asset, liability, equity, revenue, expense) the direction (+/-), and the amount.

d. Record the journal entry to show the impact of the first event occurring.

Thank you!