Reference no: EM132531135

The following ledger accounts are used by the Heartland Race Track who uses calendar year as Accounting year.

i. Accounts Receivable ii. Prepaid printing iii.Prepaid Rent iv.Unearned Admissions Revenue

v. Admissions Revenue vi. Concessions Revenue vii Printing Expense viii. Rent Expense ix. Depreciation expense x. Accumulated deprecation

Additional Information

I. On November 1, paid rent on the track facility for three months, $90,000.

II. On September-01, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $960,000.

III. On October 1, borrowed $120,000 from First National Bank by issuing a 6% note payable due in three months.

IV. On November 5, schedules for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.

V. Equipment costing $ 500,000 was purchased on Jan-01 Life of the equipment is estimated to be 5 years.

VI. The accountant for the concessions company reported that gross receipts for November were $140,000.

10% percent is due to Heartland and will be remitted by December 10.

Required:

Question 1: For each of the following transactions above, need adjusting entries for the month ended November 30 assume Heartland has a policy of adjusting accounts on monthly basis.

Question 2: Adjusting entries in respect of I,II &III assume Heartland has a policy of adjusting accounts on yearly basis.