In April a sports team collected $4,500,000 cash from the sale of season tickets for the teams home games. The entire amount was initially recorded as Unearned Ticket Revenue. During the month of May, the team played several home games at which $148,800 of the season tickets sold in April were used by fans.
Number two you would debit the unearned revenue liability for $148,800
and credit revenue for $148,800. The April entry would have recorded
the $4.5 as debit to cash and the $4.5 credit would go against unearned
revenue (liability). Thus you would not debit cash for the May entry.
As for the concept most companies don't recorded revenue till it is
earned and expenses are not expensed until they are incurred. Since the
team received the $4.5 in advance tickets sales they had not earned the
income yet because they team had not played a game. Same goes for the
rent, since they team had not played a match till May they would not
expense the rent until they actually used the stadium. Hope this helps