Homework Help is Here – Start Your Trial Now!
Business
Accounting
13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 P120,000 1,000,000 112,000 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000

13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 P120,000 1,000,000 112,000 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Solve and explain the reason why it is the answer.
13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 P120,000 1,000,000 112,000 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000
Transcribed Image Text:13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 P120,000 1,000,000 112,000 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS