Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received.
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $910,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $577,000. In 2024, $807,000 was refunded and deposits forfeited were $43,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. 2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 2 3 4 Record the deposits collected. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 2 3 4 Record the containers returned. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 2 3 4 Record the deposits forfeited - record revenue. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry View general journal > Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 2 3 4 Record the deposits forfeited adjust inventory. - Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. Balance on December 31 < Required 1 Required 2 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started