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Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $2,100. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $689 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,100 in gift cards sold (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually) and the $689 in gift cards redeemed. (Hint: The $689 includes a 6% sales tax of $39.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit

Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $2,100. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $689 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,100 in gift cards sold (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually) and the $689 in gift cards redeemed. (Hint: The $689 includes a 6% sales tax of $39.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $2,100. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $689 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,100 in gift cards sold (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually) and the $689 in gift cards redeemed. (Hint: The $689 includes a 6% sales tax of $39.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit
Transcribed Image Text:Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $2,100. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $689 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,100 in gift cards sold (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually) and the $689 in gift cards redeemed. (Hint: The $689 includes a 6% sales tax of $39.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit
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