Exercise 242 (Part Level Submission) The White Stripes Animal Encounters operates a drive through tourist attraction....

Exercise 242 (Part Level Submission)

The White Stripes Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following:

Prepaid Rent		$16,000
Buildings		30,000
Accumulated Depreciation—Buildings		6,600
Unearned Ticket Revenue		600

Other data:

1.		Three months’ rent had been prepaid on April 1.
2.		The buildings are being depreciated at $7,200 per year.
3.		The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at $5.00 each on April 1. During April, thirty of the tickets were used by customers.

(a)


	Your answer is partially correct. Try again.

Calculate the following:

1.	Monthly rent expense.	$
2.	The age of the buildings in months.		months
3.	The number of tickets sold on April 1.		tickets

Expert Solution

Req 1.
Prepaid rent balance on April 30		16000
Divide: Unexpired months on April 30 (3-1)	2
Monthly rent			8000

Req 2.
Annual depreciation		7200
Divide: Number of months	12
Monthly depreciation	600

Accumulated dep balance	6600
Divide: Monthly dep		600
Life of assets in months	11

Age of building = 11 months

Req 3.
Unearned Ticket revneue balance on April 30	600
Divide: Selling price per ticket		5
Number of tickets unused on April 330	120
Add: Number of tickets used in April	30
Total number of tickets sold on April 01	150

ekkarill92 answered 2 years ago

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