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).)

Business   Accounting   
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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)

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