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Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer.

Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer.

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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The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Complete this question by entering your answers in the tabs below. General Journal Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Gift card revenue Show Transcribed Text Gift Card Revenue The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. General Journal T account (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. < General Journal Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Beg. Bal. Complete this question by entering your answers in the tabs below. End. Bal. Gift Card Revenue T account > Prepare the relevant T-account information to support your answer. Deferred Gift Card Revenue T account
Transcribed Image Text:The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Complete this question by entering your answers in the tabs below. General Journal Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Gift card revenue Show Transcribed Text Gift Card Revenue The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. General Journal T account (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. < General Journal Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Beg. Bal. Complete this question by entering your answers in the tabs below. End. Bal. Gift Card Revenue T account > Prepare the relevant T-account information to support your answer. Deferred Gift Card Revenue T account
The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Complete this question by entering your answers in the tabs below. General Journal Gift Card Revenue Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. (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 1 T account 2 3 Record the gift card breakage at December 2018. >
Transcribed Image Text:The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru's fiscal year ends on December 31. (a.) In October 2018, sold $3,200 of gift cards, and redeemed $520 of those gift cards. (b.) In November 2018, sold $4,200 of gift cards, and redeemed $1,420 of October gift cards and $720 of November gift cards. (c.) In December 2018, sold $3,200 of gift cards, and redeemed $220 of October gift cards, $2,200 of November gift cards, and $420 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Complete this question by entering your answers in the tabs below. General Journal Gift Card Revenue Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. (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 1 T account 2 3 Record the gift card breakage at December 2018. >
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