account homework

Unearned revenues—ticket sales Kirkland Theater sells season tickets for six events at a price of $252. For the 2010 season, 1,200 season tickets were sold.

Required:

a.Use the horizontal model (or write the journal entry) to show the effect of the

sale of the season tickets.

b.Use the horizontal model (or write the journal entry) to show the effect of

presenting an event.

c.Where on the balance sheet would the account balance representing funds

received for performances not yet presented be classified?

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Bonds payable—various issues Atom Endeavour Co. issued $250 million face amount of 9% bonds when market interest rates were 8.92% for bonds of similar risk and other characteristics.

Required:

a.How much interest will be paid annually on these bonds?

b.Were the bonds issued at a premium or discount? Explain your answer.

c.Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? Explain your answer.