Question

The University of Michigan football stadium, built in 1927, is the largest college stadium in America,...

The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 107,500 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $64.50 million in ticket sales.

Required:

1. What is the average price per season ticket and average price per individual game ticket sold? (Enter your answers in dollars, not in millions (i.e. $5.5 million should be entered as 5,500,000).)

Per Season Ticket   
Per Individual Game Ticket

2. & 3. Record the advance collection of $64.50 million in ticket sales and the revenue earned after the first home game is completed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 million should be entered as 5,500,000).)

Homework Answers

Answer #1
  • The capacity of the stadium is 107,500
  • No. of home games = 6
  • Total revenue from selling tickets for all the six games = 64,500,000
  • Revenue per game = 64,500,000/6 = 10,750,000‬

1.Average price per individual game ticket = 10,750,000/107,500 =$100

Average price per season ticket =. 64,500,000/107,500 = $600

2.JOURNAL ENTRY

Cash A/C Dr. 64,500,000

To Advance Sale of tickets 64,500,000

(Advance sale of tickets recorded)

Advance sale of tickets A/C Dr. 10,750,000

To Revenue from Sale of tickets A/C 10,750,000

(Revenue earned after the completion of first home game recorded)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sherriane Baby Products’ salaries expense was $16.6 million. Required: What is the amount of cash Sherriane...
Sherriane Baby Products’ salaries expense was $16.6 million. Required: What is the amount of cash Sherriane paid to employees during the reporting period if its salaries payable increased by $4.9 million? Prepare a summary entry that represents the net effect of salaries expense incurred and paid during the reporting period. What is the amount of cash Sherriane paid to employees during the reporting period if its salaries payable increased by $4.9 million? (Enter your answer in millions rounded to 1...
On January 1, 2016, Adams-Meneke Corporation granted 60 million incentive stock options to division managers, each...
On January 1, 2016, Adams-Meneke Corporation granted 60 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within the next six years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $36 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Required:...
On January 1, 2016, Adams-Meneke Corporation granted 60 million incentive stock options to division managers, each...
On January 1, 2016, Adams-Meneke Corporation granted 60 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within the next six years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $44 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Required:...
The financial statements of Friendly Fashions include the following selected data (in millions):      ($ in...
The financial statements of Friendly Fashions include the following selected data (in millions):      ($ in millions) 2018 2017   Sales $ 8,343 $ 9,434   Net income $ 170 $ 648   Stockholders' equity $ 1,780 $ 2,220   Average Shares outstanding (in millions) 710 -   Dividends per share $ .28     Stock price $ 8.00 - Required: Calculate the following ratios for Friendly Fashions in 2018. (Enter your Dividend yield and Price-earning ratio values to two decimal places. Enter your answer in millions...
General Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014...
General Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014 Balance Sheets: Accounts receivable, net $ 1,386.7 $ 1,483.6 2015 Income statement: Sales revenue $ 17,630.3 A note disclosed that the allowance for uncollectible accounts had a balance of $25.3 million and $21.0 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $19.8 million. Required: Determine the amount of cash collected from customers during 2015. (All sales are...
Irwin, Inc., constructed a machine at a total cost of $47 million. Construction was completed at...
Irwin, Inc., constructed a machine at a total cost of $47 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $3 million. At the beginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
Irwin, Inc., constructed a machine at a total cost of $79 million. Construction was completed at...
Irwin, Inc., constructed a machine at a total cost of $79 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
At the end of 2015, Payne Industries had a deferred tax asset account with a balance...
At the end of 2015, Payne Industries had a deferred tax asset account with a balance of $28 million attributable to a temporary book-tax difference of $70 million in a liability for estimated expenses. At the end of 2016, the temporary difference is $65 million. Payne has no other temporary differences. Taxable income for 2016 is $200 million and the tax rate is 40%. Payne has a valuation allowance of $7 million for the deferred tax asset at the beginning...
4. Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $20 million and...
4. Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $20 million and taxable income of $30 million for the year ended December 31, 2018. The 2018 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows: 2019       $3 million             30% 2020          2 million            30% 2021          2 million            30% 2022          3 million           ...
The Monks, a minor league baseball team, prepare financial statements on a monthly basis. Their season...
The Monks, a minor league baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in March the team engaged in the following transactions: (a) Paid $240,000 to San Diego as advance rent for use of San Diego Stadium for the six month period April 1 through September 30. (b) Collected $480,000 cash from sales of season tickets for the team’s 20 home games. This amount was credited to Unearned Ticket Revenue. During the month...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT