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    sspencerbrown's Avatar
    sspencerbrown Posts: 1, Reputation: 1
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    #1

    Sep 10, 2013, 10:38 AM
    Earned Revenue
    Kirkland Theater sells season tickets for six events at a price of $240. In pricing the tickets, the planners assigned the leadoff event a value of $60 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,500 season tickets were sold for the 2013 season.

    Required:

    a. Calculate the theater's earned revenue after the first three events have been presented.
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    Sep 10, 2013, 10:47 AM
    Site homework rules REQUIRE you to show your answer... and your work when it appplies. We don't do your assignments for you.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Sep 10, 2013, 10:47 AM
    First you have to calculate the total price of the leadoff event, so $60 times $1,500 tickets equals Earned Revenue for the leadoff event.

    Now you have to determine the cost of the other events. So start with the $240 ticket price minus the $60 leadoff event, times 1,500 tickets equals total amount paid for remaining 5 events. This is what should be in your Unearned Revenue account.

    Now take the total amount paid for the remaining 5 events times 3/5 equals Earned Revenue. Finally add your two Earned Revenue amounts together to get your total Earned Revenue amount.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Sep 10, 2013, 12:31 PM
    The fraction should be 2/5
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