Exercise 4.3

"The Rockford Rollers, a professional roller derby team, prepares financial statements on a monthly

basis. The roller derby season begins in February, but in January, the team engaged in the follow-ing

transactions:

1. Paid $33,000 to the Sunbury Skating Rink as advance rent for use of the facilities for the 6-month

period from February 1 through July 31. This payment was initially recorded as Prepaid Rent.

2. Collected $45,000 cash from the sale of season tickets for the team's home games. The entire

amount was initially recorded as Unearned Ticket Revenue. During the month of February, the

team skated several home events at which $7,000 of the season tickets sold in January were

used by fans