E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).
E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please show all the work.
Transcribed Image Text:E7-4 Presented below are three independent situations:
1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from
Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction.
2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance
uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75%
fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this
purchase.
3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595.
On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase.
Instructions
(a) Prepare Hockey Town's journal entries for the transactions in part (1).
(b) Prepare Circle Creations' journal entries for the transactions in part (2).
(c) Prepare The Bay's journal entries for the transactions in part (3).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education