CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January, $16,000O in February, and$17,400 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,800 for the January giftcards sold, $6,300 for the February cards, and $4,800 for the March cards. CircuitTown considers gift cards to be “broken" (notredeemable) 10 months after sale.Required:1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration)of gift cards.3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?Complete this question by entering your answers in the tabs below.Req 2Req 1 and 3and 4Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) ofgift cards. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet123Record the January gift card sales.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journalJournal entry worksheetく12>Record the redemption of January gift cards.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit2Record entryClear entryView general journalJournal entry worksheetく12Record the expiration of January gift cards.Note: Enter debits before credits.TransactionGeneral JournalDebitCreditRecord entryClear entryView general journal CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January, $16,000 in February, and$17,400 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,800 for the January giftcards sold, $6,300 for the February cards, and $4,800 for the March cards. CircuitTown considers gift cards to be “broken" (notredeemable) 10 months after sale.Required:1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration)of gift cards.3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?Complete this question by entering your answers in the tabs below.Req 1 and 3and 4Req 2How much revenue will CircuitTown recognize with respect to January gift card and March gift card sales during 2021? Whatliability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?1. Revenue recognized from January gift card sales3. Revenue recognized from March gift card sales4. Year-end deferred revenue liability< Req 2Reg 1 and 3 and 4 >

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CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January, $16,000 in February, and $17,400 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,800 for the January gift cards sold, $6,300 for the February cards, and $4,800 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? Complete this question by entering your answers in the tabs below. Req 2 Req 1 and 3 and 4 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 > Record the January gift card sales. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 > Record the redemption of January gift cards. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 > Record the expiration of January gift cards. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q