Exercise 13-9 (Algo) Gift Cards [LO13-3] 30.43 CircultTown commenced a gift card program in January 2021 and sold $12,150 of gift cards in January, $19,150 in February, and $18,100 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,850 for the January gift cards sold. $4,350 for the February cards, and $4,250 for the March cards, Circuittown considers gift cards to be broken" (not redeemable) 10 months after sale Required: 1. How much revenue will Circuit Town 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 taxi and breakage (expiration) of gift cards 3. How much revenue will Circuit Town recognize with respect to March gift card salos 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. Reg 2 Reg 1 and 3 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 held.) View transaction ist Journal entry worksheet 1 2 3 20 Part 2 1 Help Exercise 13-13 (Algo) Current-noncurrent classification of debt (LO13-1, 13-4) At December 31, 2021, Newman Engineering's liabilities include the following: 1. $11 million of 5% bonds were issued for $11 million on May 31, 1999. The bonds mature on May 31, 2029, but bondholders have the option of calling (demanding payment on the bonds on May 31, 2022. However, the option to call is not expected to be exercised, glven prevailing market conditions. 2. $15 million of 4% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 176% of its current liabilities. On December 31, 2021, Newman is in violation of this covenant. Newman obtained a walver from National City Bank until June 2022, having convinced the bank that the company's normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2022 3. $8 million of 7% bonds were issued for $8 million on August 1, 1989. The bonds mature on July 31, 2022. Sufficient cash is expected to be available to retire the bonds at maturity Required: Classify the above mentioned debts as current liabilities or noncurrent lobilities. Also, provide corresponding value for the same. (Enter your answers in millions (.e., 10,000,000 should be entered as 10).) Debt Classification Million(s) 1. 2 3