the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800…

the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800 of the revenue has been earned. the adjusting entry to be made on december 31 includes a:\na. credit to prepaid revenue of $3,200.\nb. debit to ticket revenue of $4,800.\nc. debit to unearned revenue of $4,800.\nd. credit to unearned revenue of $4,800.

the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800 of the revenue has been earned. the adjusting entry to be made on december 31 includes a:\na. credit to prepaid revenue of $3,200.\nb. debit to ticket revenue of $4,800.\nc. debit to unearned revenue of $4,800.\nd. credit to unearned revenue of $4,800.

Answer

Brief Explanations:

When the team receives $8,000 for season tickets on August 1, it records unearned revenue (a liability). By December 31, when $4,800 of the revenue is earned, the unearned revenue (liability) decreases. A debit to Unearned Revenue (to reduce the liability) and a credit to Ticket Revenue (to recognize the earned revenue) is made.

Answer:

C. debit to Unearned Revenue of $4,800.