Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $20.3 million in iTunes gift cards in December, and customers redeem $13.3 million of the gift cards.

8.

value: 2.50 points

Required information

Required:

1. & 2.

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.) journal entry for Record the receipt of cash for gift cards.

What is the ending balance in the unearned revenue account? (Enter your answer in dollars, not in millions.) ending balance..........

2. Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7 million cash on October 1, 2015, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. Journal entry for Record the issuance of the note for Precision Castparts.