The bar graphs show the total cash received from season pass sales and sales revenue recognized by the university each month. The line graph plots the balance of the Deferred Revenue account over the year. Answer the following questions. Required: 1. In which month were the most season passes sold? 2. In which month were the most games played? 3. In which month was the most sales revenue recognized? 4. Based on the graph, which statement best summarizes when revenue is recognized? 5a. In July, cash collected from season pass sales was $3,200,000 (8,000 passes sold × $400 per season pass). Record the entry for the month of July for cash collected from season pass sales. 5b. What happens to the balance of Deferred Revenue when cash is received for a season pass prior to the season? 5c. What is the total amount of Deferred Revenue by the end of August once all 60,000 season passes are sold for $400 each? 6a. In September, two home games were played. Record the entry related to season passes for the month of September (Hint: Two home games represent one-third of the six home games for the season). 6b. What happens to the balance of Deferred Revenue when games are played? 6c. What will be the balance of Deferred Revenue after the final home game is played in November?

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)