Homework Answers
d. Debit Deferred revenue, credit revenue
Deferred revenue is treated as liability until the gift cards are redeemed. Once they are redeemed, the liability is debited and revenue from such sale is credited.
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Customers redeemed 5,000 ABC company gift card in September. Which one is the correct journal entry?...
ABC company sold 8,000 gift card in the current month. Which one should be the correct journal entry? Select one or...
ABC company sold 8,000 gift card in the current month. Which one should be the correct journal entry? Select one or more a. Debit Cash, Credit Unearned Revenue 3. b. Debit Unearned Revenue, Credit Cash c. Debit Revenue, Credit Cash d. Debit Cash, Credit Revenue
Which of the following shows the correct journal entry to record the sale under the gross...
Which of the following shows the correct journal entry to record the sale under the gross method if Beryl Brothers made a $15,000 sale with credit terms of 1/15, n/30? A : Debit Accounts Receivable for $14,850 and credit Sales Revenue for $14,850 B : Debit Accounts Receivable for $15,000 and credit Sales Revenue for $15,000 C : Debit Accounts Receivable for $14,850 and Sales Discounts for $150 and credit Sales Revenue for $15,000 D : Debit Accounts Receivable for...
CircuitTown commenced a gift card program in January 2021 and sold $11,700 of gift cards in...
CircuitTown commenced a gift card program in January 2021 and sold $11,700 of gift cards in January, $18,100 in February, and $21,650 E in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,500 for the January gift cards sold, $6,050 for the February cards, and $6,250 for the March cards. Circuit Town considers gift cards to be “broken” (not redeemable) E 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with...
A company received $8,500 from customers on account. The journal to record this transaction is: Select...
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During December 2020, Soft Skin Ltd. sells $27,500 of gift cards to customers. From reliable past...
During December 2020, Soft Skin Ltd. sells $27,500 of gift cards to customers. From reliable past experience, management estimates that 6% of the gift cards sold will not be redeemed by customers. In January 2021, $2,300 of these cards is redeemed for merchandise with a cost of $1,725. In February 2021, a further $9,800 of these cards is redeemed for merchandise with a cost of $7,840. The company uses a perpetual inventory system and has a February 28 year end....
The following facts relate to gift cards sold by Sunbru Coffee Company during 2021. Sunbru's fiscal...
The following facts relate to gift cards sold by Sunbru Coffee Company during 2021. Sunbru's fiscal year ends on December 31. (a.) In October 2021, sold $3,000 of gift cards, and redeemed $500 of those gift cards. (5.) In November 2021 , sold $4,000 of gift cards, and redeemed $1,400 of October gift cards and $700 of November gift cards. (c.) In December 2021, sold $3,000 of gift cards, and redeemed $200 of October gift cards, $2,000 of November gift...
The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru’s fiscal...
The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru’s fiscal year ends on December 31. (a.) In October 2018, sold $2,100 of gift cards, and redeemed $410 of those gift cards. (b.) In November 2018, sold $3,100 of gift cards, and redeemed $1,310 of October gift cards and $610 of November gift cards. (c.) In December 2018, sold $2,100 of gift cards, and redeemed $110 of October gift cards, $1,100 of November gift cards,...
Prepare the closing entry required at September 30, 2018. (If no entry is required for a...
Prepare the closing entry required at September 30,
2018. (If no entry is required for a
transaction/event, select "No Journal Entry Required"
in the first account field.)
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018. $ 610 310 Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Deferred...
Prepare the adjusting journal entries for the following transactions (If no entry is required for a...
Prepare the adjusting journal entries for the following transactions (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) 1. Supplies for office use were purchased during the year for $680, of which $190 remained on hand (unused) at year-end. 2. Interest of $340 on a note receivable was earned at year-end, although collection of the interest is not due until the following year. 3. At year-end, salaries and wages payable of...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory Accounting is more expensive to maintain than Perpetual Inventory Accounting There is no difference between the expense of using Periodic Inventory Accounting versus Perpetual Inventory Accounting ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal: A) $6,000. B) $12,000. C) $18,000. D) $9,000. In January, 2018, ABC....
ABC company sold 8,000 gift card in the current month. Which one should be the correct journal entry? Select one or more a. Debit Cash, Credit Unearned Revenue 3. b. Debit Unearned Revenue, Credit Cash c. Debit Revenue, Credit Cash d. Debit Cash, Credit Revenue
CircuitTown commenced a gift card program in January 2021 and sold $11,700 of gift cards in January, $18,100 in February, and $21,650 E in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,500 for the January gift cards sold, $6,050 for the February cards, and $6,250 for the March cards. Circuit Town considers gift cards to be “broken” (not redeemable) E 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with...
A company received $8,500 from customers on account. The journal to record this transaction is: Select one: O A. Debit cash, Credit Accounts Payable O B. Credit Cash, Debit Accounts Receivable C. Debit Cash, Credit Accounts Receivable • D. Debit Accounts Receivable, Credit Cash
During December 2020, Soft Skin Ltd. sells $27,500 of gift cards to customers. From reliable past experience, management estimates that 6% of the gift cards sold will not be redeemed by customers. In January 2021, $2,300 of these cards is redeemed for merchandise with a cost of $1,725. In February 2021, a further $9,800 of these cards is redeemed for merchandise with a cost of $7,840. The company uses a perpetual inventory system and has a February 28 year end....
The following facts relate to gift cards sold by Sunbru Coffee Company during 2021. Sunbru's fiscal year ends on December 31. (a.) In October 2021, sold $3,000 of gift cards, and redeemed $500 of those gift cards. (5.) In November 2021 , sold $4,000 of gift cards, and redeemed $1,400 of October gift cards and $700 of November gift cards. (c.) In December 2021, sold $3,000 of gift cards, and redeemed $200 of October gift cards, $2,000 of November gift...
Prepare the closing entry required at September 30,
2018. (If no entry is required for a
transaction/event, select "No Journal Entry Required"
in the first account field.)
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018. $ 610 310 Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Deferred...
Prepare the adjusting journal entries for the following transactions (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) 1. Supplies for office use were purchased during the year for $680, of which $190 remained on hand (unused) at year-end. 2. Interest of $340 on a note receivable was earned at year-end, although collection of the interest is not due until the following year. 3. At year-end, salaries and wages payable of...
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