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

    Oct 2, 2015, 03:52 AM
    Adjusting Entry
    The theater allows the local YMCA to bring children attending summer camp to the movies on any weekday afternoon for a fixed fee of $ 500 per month. On June 28, the YMCA made a $ 1,500 advance payment covering the months of July, August, and September.What is the adjusting entry?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 2, 2015, 07:55 AM
    Not enough information provided to solve the problem. When is the adjusting entry being made? Is it at the end of July, end of August, or the end of September. Divide the advance payment by 3 to get the amount of adjusting entry for 1 month. Your accounts for the adjusting entry will be a revenue account and an asset account. The amount of the adjusting entry will be the number of months times your 1 month amount.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    Oct 2, 2015, 02:29 PM
    If we make the assumption, something an accountant should not do that the balance date is 30th June then one of the accounts will be sales and the other income received in advance
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