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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Give me answer within 45 min please I will give you upvote immediately its very urgent ....thankyou....
Posa Hotels, Inc., has a sixth night free policy.
Every sixth night a guest stays at the hotel is
free. Because not all guests stay enough nights
to earn a free stay, on average the number of
free nights redeemed is 70% of the maximum
possible number of free nights available one
obtains by dividing the total number of paid
nights the hotel has had by 5. Rooms at Posa
Hotels cost $300 per night.
In 2019, Posa had a total of 100,000 paid room-
nights and collected a total of $30 million from
customers. Also in 2019, customers redeemed a
total of 10,000 free room-nights. Some of the
room-nights awarded were based on customers
paid nights from previous years and some were
based on paid nights from the current year.
Required:
Prepare journal entries to record revenue for
2019 for Posa. (If no entry is required for a
particular transaction, select "No journal entry
required" in the first account field. Do not round
intermediate calculations. Round your answers
to the nearest whole dollar amount.)
Transcribed Image Text:Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to earn a free stay, on average the number of free nights redeemed is 70% of the maximum possible number of free nights available one obtains by dividing the total number of paid nights the hotel has had by 5. Rooms at Posa Hotels cost $300 per night. In 2019, Posa had a total of 100,000 paid room- nights and collected a total of $30 million from customers. Also in 2019, customers redeemed a total of 10,000 free room-nights. Some of the room-nights awarded were based on customers paid nights from previous years and some were based on paid nights from the current year. Required: Prepare journal entries to record revenue for 2019 for Posa. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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