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: \n\na. debit to ticket revenue of $4,800.\n\nb. debit to unearned revenue of $4,800.\n\nc. credit to prepaid revenue of $3,200.\n\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: \n\na. debit to ticket revenue of $4,800.\n\nb. debit to unearned revenue of $4,800.\n\nc. credit to prepaid revenue of $3,200.\n\nd. credit to unearned revenue of $4,800.

Answer

Brief Explanations:

When the team received $8,000 for season - tickets on August 1, it was initially recorded as unearned revenue (a liability). As of December 31, $4,800 of the revenue has been earned. To recognize the earned revenue, we debit the unearned revenue account (to reduce the liability) and credit the ticket revenue account.

Answer:

B. debit to Unearned Revenue of $4,800