Problem 8-6A (Algo) Record deferred revenues and sales taxes (LO8-4)Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards invarious amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate onrestaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January.Required:1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each saleof a gift card individually) and the $832 in gift cards redeemed. (Hint. The $832 includes a 4% sales tax of $32.)3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on theDecember 31 balance sheet.Complete this question by entering your answers in the tabs below.Req 1 and 2Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a giftcard individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)Req 3View transaction listJournal entry worksheet<12Record the $2,600 in gift cards sold.Note: Enter debits before credits.Transaction1Record entryGeneral JournalClear entry< Req 1 and 2DebitCreditView general JournalReq 3 >>Req 1 and 2Journal entry worksheet< 1 2Req 3Deferred revenueRecord the $832 in gift cards redeemed. (Hint: The $832 includes a 4% salestax of $32.)Note: Enter debits before credits.Transaction2Record entryComplete this question by entering your answers in the tabs below.General JournalClear entry< Req 1 and 2< Req 1 and 2DebitReq 3 >CreditDetermine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on theDecember 31 balance sheet.View general JournalReq 3 >

Journal Entry :— It is an act of recording transaction in books of account when transaction…

Problem 8-6A (Algo) Record deferred revenues and sales taxes (L08-4) Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint The $832 includes a 4% sales tax of $32.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift. card individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (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 < 12 Record the $2,600 in gift cards sold. > Journal entry worksheet < 1 2 Record the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry < Req 1 and 2 Complete this question by entering your answers in the tabs below. Debit Credit View general Journal Req 3 > >

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q