Question - The King Street Zoo operates a drive-through tourist attraction in Toronto. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following:
Prepaid Rent $12,000
Fencing 40,000
Accumulated Depreciation-Fencing 6,000
Unearned Revenue 500
Other data:
1. Four months rent had been prepaid on April 1.
2. The fencing is being depreciated at $7,200 per year.
3. The unearned revenue represents tickets sold for future zoo visits. The tickets were sold at $4.00 each on April 1. During April, twenty-five of the tickets were used by customers.
Instructions
(a) Calculate the following:
Monthly rent expense.
The age of the fencing in months.
The number of tickets sold on April 1.
(b) Prepare the adjusting entries that were made by the Queen Street Zoo on April 30.