Derby University sells 4700 season basketball tickets at 180

Derby University sells 4,700 season basketball tickets at $180 each for its 12-game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized by playing the first home game.

Solution

Part (a) The sale of the season ticket

Debit Cash $846,000

[4,700 tickets x $180 per ticket]
               Credit Unearned Revenue - Season Tickets $846,000

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Part (b) The revenue recognized by playing the first home game
Debit Unearned Revenue - Season Tickets $70,500

[$470,000 / 12]
                                    Credit Revenue from Tickets Sold $70,500