The White Stripes Animal Encounters Operates a Drive Through Tourist

The White Stripes Animal Encounters operates a drive through tourist attraction. 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: $$\begin{array} { l r } \text { Prepaid Rent } & \$ 16,000 \\\text { Buildings } & 30,000 \\\text { Accumulated Depreciation-Buildings } & 6,600 \\\text { Unearned Ticket Revenue } & 600\end{array}$$ Other data:
1. Three months' rent had been prepaid on April 1.
2. The buildings are being depreciated at $7200 per year.
3. The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at $5.00 each on April 1. During April thirty of the tickets were used by customers.
Instructions
(a) Calculate the following:
1. Monthly rent expense.
2. The age of the buildings in months.
3. The number of tickets sold on April 1.
(b) Prepare the adjusting entries that were made by the White Stripes Animal Encounters on April 30.

Correct Answer:

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(a) 1. $8000. The $16000 balance on the ...

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