Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2017, balance sheet shows Unearned Revenues totalling $239,000. During 2018, $339,000 of cash was collected in total from customers: $237,000 regarding work completed during the year for customers who paid 40% down in 2017, and the balance representing the 40% prepayments for work to be done in 2019. Required: 1. Prepare the entry to record the collection of cash in 2018. (Do not round intermediate calculations. Round the answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet < 1 2 Record the revenues earned during 2018 and the collection of the remaining >

Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2017, balance sheet shows Unearned Revenues totalling $239,000. During 2018, $339,000 of cash was collected in total from customers: $237,000 regarding work completed during the year for customers who paid 40% down in 2017, and the balance representing the 40% prepayments for work to be done in 2019. Required: 1. Prepare the entry to record the collection of cash in 2018. (Do not round intermediate calculations. Round the answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet < 1 2 Record the revenues earned during 2018 and the collection of the remaining >

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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Bavarian Bar and Grill opened for business in November 2018. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemablefor meals within two years of the purchase date, although experience within the industry indicates that 80% of giftcertificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2018for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (notgift certificates) are purchased. Sales taxes will be remitted in January.Required:1. Prepare the appropriate journal entries (in summary form) for the gift certificates sold during 2018 (keepingin mind that, in actuality, each sale of a gift certificate or a meal would be recorded individually).2. Determine the liability for gift certificates to be reported on the December 31, 2018, balance sheet.3. What is the appropriate…
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