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Listed below are selected transactions of Metlock Department Store for the current year ending December 31. 1. On December 5, the store received $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $810,600, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. 4. On December 10, the store purchased for cash three delivery trucks for $121,700. The trucks were purchased in a state that applies a 5% sales tax. The store sold 27 gift cards for $100 per card. At year-end, 22 of the gift cards are redeemed. Metlock expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicit assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Dec. 5 Cash Refundable Deposit Liability Dec. 1-31 ▼ Cash Sales Revenue Sales Taxes Payable Debit 550 810600 Credit 550 772000 38600

Listed below are selected transactions of Metlock Department Store for the current year ending December 31. 1. On December 5, the store received $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $810,600, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. 4. On December 10, the store purchased for cash three delivery trucks for $121,700. The trucks were purchased in a state that applies a 5% sales tax. The store sold 27 gift cards for $100 per card. At year-end, 22 of the gift cards are redeemed. Metlock expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicit assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Dec. 5 Cash Refundable Deposit Liability Dec. 1-31 ▼ Cash Sales Revenue Sales Taxes Payable Debit 550 810600 Credit 550 772000 38600

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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To record redemption and expected breakage revenue)
Listed below are selected transactions of Metlock Department Store for the current year ending December 31. 1. On December 5, the store received $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $810,600, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. 4. On December 10, the store purchased for cash three delivery trucks for $121,700. The trucks were purchased in a state that applies a 5% sales tax. The store sold 27 gift cards for $100 per card. At year-end, 22 of the gift cards are redeemed. Metlock expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicit assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Dec. 5 Cash Refundable Deposit Liability Dec. 1-31 ▼ Cash Sales Revenue Sales Taxes Payable Debit 550 810600 Credit 550 772000 38600
Transcribed Image Text:Listed below are selected transactions of Metlock Department Store for the current year ending December 31. 1. On December 5, the store received $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $810,600, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. 4. On December 10, the store purchased for cash three delivery trucks for $121,700. The trucks were purchased in a state that applies a 5% sales tax. The store sold 27 gift cards for $100 per card. At year-end, 22 of the gift cards are redeemed. Metlock expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicit assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Dec. 5 Cash Refundable Deposit Liability Dec. 1-31 ▼ Cash Sales Revenue Sales Taxes Payable Debit 550 810600 Credit 550 772000 38600
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