I am not sure how you are supposed to do journal entrieswith the information given and was hoping someone could assist mewith this problem.
Your goal is to forecast an income statement, balance sheet andstatement of cash flows for Manchester United (ManU) for 2013. ManUhas three primary lines of revenue – commercial (merchandisesales), broadcasting and matchday revenue (tickets to games).Assume that ManU recognizes revenue from ticket sales andbroadcasting rights when the associated matches are played, andrecognizes revenues from merchandise sales when the merchandise issold.When forecasting the balance sheet, assume that othernon-current assets, other current liabilities and non-currentliabilities will remain unchanged from 2012 to 2013.
Matchday Revenue (Ticket Sales):
You forecast that ManU will earn £96,321 from tickets to gamesthat are played during the 2013 season. Assume that ManU will sellsome of the 2013 seats through game-day sales (£30,844) and thatthe remainder (£65,477) will be for season tickets sold in 2012covering the 2013 season (“deferred revenue” on the balance sheet).Assume further that ManU will sell (for cash) £48,976 of ticketsduring 2013 for the 2014 season.
Cash x/x xx xx,xxx
Cash x/x DR xx,xxx
Deferred xxxxxxx a/c xx xx,xxx
Current xxxxxx in xxxx
Current xxxxxx xx xxxx