Ch 4 Handout _1_ Acc and Cash

Ch 4 Handout _1_ Acc and Cash - 2 Using Accrual Accounting...

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Chapter 4 – Handout – Accounting 207 The Blasters, a semi-professional baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in March the team engaged in the following transactions: (a) Paid $180,000 to Welshire City as advance rent for use of Welshire City Stadium for the six-month period April 1 through September 30. (b) Collected $400,000 cash from sales of season tickets for the team's 20 home games. This amount was credited to Unearned Ticket Revenue. During the month of April, the Blasters played four home games and five road games. 1) Using Cash Accounting, what is the Rent Expense for April?
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Unformatted text preview: 2) Using Accrual Accounting, what is the Rent Expense for April? 3) Using Cash Accounting, the Revenues for April would be how much? 4) Using Accrual Accounting, the Revenues for April would be how much? The 2009 income statement for Goring Company showed rent expense of $6,500 and wages expenses of $7,600. The related balance sheet account balance at year end last year and this year were as follows: 2009 2008 Prepaid Rent $ 900 $ 200 Wages Payable $ 300 $ 400 Calculate the following for 2009: 1. Cash paid for rent. 2. Cash paid for wages....
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