CircuitTown commenced a gift card program in January 2021 and sold $11,900 of gift cards in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
CircuitTown commenced a gift card program in January 2021 and sold $11,900 of gift cards in January, $19,450 in February, and $20,850 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $8,100 for the January gift cards sold, $4600 for the February cards, and $6,100 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 and 4 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list > 1 Record the January gift card sales. 2 Record the redemption of January gift cards. Record the expiration of January gift cards. Credit Req 1 and 3 Req 2 and 4 How much revenue will CircuitTown recognize with respect to January gift card and March gift card sales during 2021? What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? 1. Revenue recognized from January gift card sales 3. Revenue recognized from March gift card sales 4. Year-end deferred revenue liability CircuitTown commenced a gift card program in January 2021 and sold $11,900 of gift cards in January, $19,450 in February, and $20,850 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $8,100 for the January gift cards sold, $4600 for the February cards, and $6,100 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 and 4 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list > 1 Record the January gift card sales. 2 Record the redemption of January gift cards. Record the expiration of January gift cards. Credit Req 1 and 3 Req 2 and 4 How much revenue will CircuitTown recognize with respect to January gift card and March gift card sales during 2021? What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? 1. Revenue recognized from January gift card sales 3. Revenue recognized from March gift card sales 4. Year-end deferred revenue liability
Expert Answer:
Answer rating: 100% (QA)
Answer Requirement 1 The entire 11900 sold in January will be recognized as reven... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March 2021 before discontinuing further gift card sales....
-
CircuitTown commenced a gift card program in January 2011 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of 2011 before discontinuing further gift card sales....
-
CircuitTown commenced a gift card program in January 2013 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of 2013 before discontinuing further gift card sales....
-
The Transco Company is considering making and supplying computer-controlled traffic- signal switching boxes to be used throughout Arizona. Transco has estimated the market for its boxes by examining...
-
One year ago, Art Vandelay bought Norwood Industries shares for $37 per share. Today they are worth $40 per share. During the year, Art received dividends of $0.60 per share. Compute his income...
-
Show that the longest-lived isotope of radium, 226 88 Ra,is energetically allowed to decay by emission of a 14 6 C nucleus. This decay has been observed with aprobability of 3.2 10 9 .
-
A steady-state turbulent flow through a long coiled duct is modeled using the standard \(k-\epsilon\) model. Assuming the fluid is incompressible and isothermal, write the full system of equations...
-
Friendleys Miniature Golf and Driving Range Inc. was opened on March 1 by Dean Barley. These selected events and transactions occurred during March. Mar. 1 Stockholders invested $50,000 cash in the...
-
What are the accounting issues in this practice case? Sasha has asked you to discuss any accounting issues that you identify and provide valid audit procedures addressing each of the significant...
-
Sales of vegetable dehydrators at Bud Baniss discount department store in Gander over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and...
-
Let X1, X2, ...Xn be a random sample from a Uniform(0, 10) distribution. (a) Show that the MLE of 0 is, 0ML = min{X1, X2, ...X}. (b) Find the sampling distribution of the MLE by first finding the CDF...
-
Company XYZ sold 2,500 units in July at a price 50% above the unit cost, its unit cost is $ 500. If next month it expects to sell 30% more units at the same price, what will be the quantity of sales...
-
Suppose that the variable portion of servicing one retail customer is $4 (under the new Activity-Based-Costing system). If the bank responds to the new customer profitability numbers by letting one...
-
How does a organization build an annual salary budget around components such as time off benefits, allowances, overtime, call out, and different employee groups earning different rates of pay?
-
A firm has $ 6 0 , 0 0 0 in cash, $ 2 0 0 , 0 0 0 in accounts receivable, and $ 4 0 0 , 0 0 0 in current liabilities. Its quick ratio is?
-
a . Your relative promises to pay you $ 5 , 0 0 0 , 1 2 years from now. What is the maximum amount you would lend to your relative as of 8 / 1 5 / 2 0 2 0 ? Why? b . What is the present value of risk...
-
I need help filling the boxes that I haven't filled in yet. I would much appreciate the help! thank you With the partial model please forecast Zieber's 2017 income statement and balance sheets. Use...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
Access the FASB's Codification Research System at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items: 1. The disclosure required in the...
-
What are the essential characteristics of liabilities for purposes of financial reporting?
-
How might a license for symbolic intellectual property be treated differently under IFRS as compared to U.S. GAAP?
-
1. Peter Oiler was a truck driver at the grocery chain Winn-Dixie. He was also a transvestite he liked to dress as a woman. When his supervisor at Winn-Dixie found out about his cross-dressing, Oiler...
-
3. When Walton Weiner interviewed for a job with McGraw-Hill, Inc., he was assured that the company would not terminate an employee without "just cause." Weiner also signed a contract specifying that...
-
4. ETHICS John Mundorf hired three women to work for Gus Construction Co. as traffic controllers at road construction sites in Iowa. Male members of the construction crew incessantly referred to the...
Study smarter with the SolutionInn App