Answer:
9,000 *$100 = 900,000
Db. Cash 900,000
Cr. Unearned Ticket Revenue 900,000
Answer:
Dr Cash -$900,000 and Cr Unrealized Income( liability) -$900,000
Explanation:
In line with International Accounting Standards, revenue can only be recognized when it is probable that any future economic benefit associated with the item of revenue will flow to the entity, and the amount of revenue can be measured with reliability.
In this case, the subscribers of the football tickets are yet to enjoy the service and going by prudency concept, it will be over ambitious for the entity to recognize the revenue as being earned now.
Hence, this should be treated as deferred or unrealized income.
