McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming season and receives $960,000 cash. The season starts January 1, with five home games occurring monthly over the next six months. What is the balance in the company’s deferred revenue account at the end of April? (Assume the deferred revenue account had a zero balance on January 1.) Select one: a. $320,000 b. None of these are correct. c. $480,000 d. $640,000 e. $960,000
McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming season and receives $960,000 cash. The season starts January 1, with five home games occurring monthly over the next six months. What is the balance in the company’s deferred revenue account at the end of April? (Assume the deferred revenue account had a zero balance on January 1.) Select one: a. $320,000 b. None of these are correct. c. $480,000 d. $640,000 e. $960,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming season and receives $960,000 cash. The season starts January 1, with five home games occurring monthly over the next six months. What is the balance in the company’s deferred revenue account at the end of April? (Assume the deferred revenue account had a zero balance on January 1.)
Select one:
a. $320,000
b. None of these are correct.
c. $480,000
d. $640,000
e. $960,000
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