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Concert Tickets Sold in Advance
Rock N Roll produces an outdoor concert festival that runs from June 28, 2014, through July 1, 2014. Concertgoers pay $80 for a four-day pass to the festival, and all 10,000 tickets are sold out by the May 1, 2014, deadline to buy tickets. Assume that Rock N Roll prepares adjusting entries at the end of each month.
Required
1. Prepare the journal entry on May 1, 2014, assuming that all 10,000 tickets are sold on this date.
2. Prepare the adjusting entry on June 30, 2014.
3. Prepare the adjusting entry on July 31, 2014.
TRM Corporation established a defined benefit pension plan in Year 5. In Year 8 the following information is available. Service cost = $45,000. Interest cost = $60,000.
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