Required information Exercise 7-13 (Algo) Unearned revenues-customer deposits LO 7-3 [The following information applies to the questions displayed below] NightWoundsTime Brewing Company distributes its products in an aluminum keg Customers are charged a deposit of $85 per keg: deposits are recorded in the Keg Deposits account Exercise 7-13 (Algo) Part d - Horizontal model Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Balance Sheet Income Statement
Required information Exercise 7-13 (Algo) Unearned revenues-customer deposits LO 7-3 [The following information applies to the questions displayed below] NightWoundsTime Brewing Company distributes its products in an aluminum keg Customers are charged a deposit of $85 per keg: deposits are recorded in the Keg Deposits account Exercise 7-13 (Algo) Part d - Horizontal model Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Balance Sheet Income Statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Exercise 7-13 (Algo) Unearned revenues-customer deposits LO 7-3
[The following information applies to the questions displayed below]
NightWoundsTime Brewing Company distributes its products in an aluminum keg. Customers are charged a deposit of
$85 per keg; deposits are recorded in the Keg Deposits account
Exercise 7-13 (Algo) Part d - Horizontal model
d. Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used
by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect
Note: Enter decreases with a minus sign to indicate a negative financial statement effect.
Assets
- Accumulated Depreciation
- Keg Expense
-Kegs
+ Accumulated depreciation
Balance Sheet
Liabilities
Stockholders' Equity
Net Income
Income Statement
Revenues](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3b7da89-480b-4b70-a8d0-d00beacb0479%2Fec2d0361-b1d2-4c9b-9af5-703ecc1c5aa4%2F5zrgc9l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 7-13 (Algo) Unearned revenues-customer deposits LO 7-3
[The following information applies to the questions displayed below]
NightWoundsTime Brewing Company distributes its products in an aluminum keg. Customers are charged a deposit of
$85 per keg; deposits are recorded in the Keg Deposits account
Exercise 7-13 (Algo) Part d - Horizontal model
d. Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used
by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect
Note: Enter decreases with a minus sign to indicate a negative financial statement effect.
Assets
- Accumulated Depreciation
- Keg Expense
-Kegs
+ Accumulated depreciation
Balance Sheet
Liabilities
Stockholders' Equity
Net Income
Income Statement
Revenues
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