Chapter 4
Current Liabilities
195
AP-10B (
5
)
A local transit company sells transit passes for $150 each. The company sold 1,200 units on
February 1, 2016, and each one is valid for six months.
Required
Write the entry for the following.
a) The sale of the transit passes
b) The entry to be recorded on June 30, the company’s year-end
Date
Account Title and Explanation
Debit
Credit
