The team has collected 75% of its $200,000 of season ticket money in advance and will have played exactly ½ of the season on December 31, 2015.
Operating expenses for 2015 are $40,000 of payroll and $35,000 of other expenses (utilities, insurance, etc.). Only 2/3 of operating expenses were paid during 2015.
The assignment - Create a P&L and Balance Sheet for the year ended 12/31/2015 based on the above facts. There are no other financial details of the business.
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Total Season Ticket Sales 200.000 << This is revenue Cash 150.000
Percentage collected in advance 0,75 Accounts Receivable 50.000
Cash from season ticket sales 150.000 <<This cash collected Unearned Ticket Sales 200.000
Total Season Ticket Sales 200.000
Less Cash Collected 150.000
Season Ticket Accounts Receivable 50.000 <<This is the amount of season ticket sales to be collected
This is an asset....