During the month of September, the Texas Go-Kart Company had the following business activities:1. On September 1, paid rent on the track facility for six months at a total cost of $11,400. 2. On September 1, received $38,400 for season tickets for 12-month admission to the race track. 3. On September 1, booked the race track for a private organization that will use the track one day per month for $1,900 each time, to be paid in the following month. The organization uses the track on September 30. 4. On September 1, hired a new manager at a monthly salary of $1,700, to be paid the first Monday following the end of the month. Required: 1. Prepare the journal entry, if any, required to record each of the initial business activities on September. Transaction General Journal Debit Credit 2. Prepare the adjusting journal entries, if any, required on September 30.Journal Entry Worksheet Record the adjusting entry for the payment of rent on the track facility for six months at a total cost of $13,800.

rent expense     1,900 debit

   prepaid rent            1,900 credit

unearned revenue   3,200 debit

         ticket revenue          3,200 credit

rent expense           1,900 debit

       rent payable            1,900 credit

salaries expense     1,700 debit

      salaries payable      1,700 credit

Explanation:

11,400 --> 6 month of rent

at end-of-the-month we recognize the expired amount:

11,400 / 6 = 1,900

38,400 represent 12 month of ticket this is unearned revenue which is recognize as time passes:

38,400 / 12 = 3,200

for the book it iwll be cosidered rent expense

and the salaries for the worker will be considered as payable as well because we didn't pay the employee yet.

answer; intensive use of a sales force and is relatively costly;

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