P9-7 Determining Financial Statement Effects of Deferred Revenue

P9-7 Determining Financial Statement Effects of Deferred Revenues L09-1 A. Deferred revenues-customer deposits Eastern Brewing Company (EBC) distributes its products in an aluminum keg. Customers are charged a deposit of $21 per kg, and deposits received from customers are recorded in the og deposits account Required: 1. This part of the question is not part of your Connect assignment. returned. How would the deposits related to these Bokegs be reflected in the company's financial statements of no entry is required 2. A production specialist who works for EBC estimates that so eas for which deposits were received during the year will never be for a transaction event, select "No journal entry required in the first account field.) View transaction that Journal entry worksheet 1 Record deposit Revenue General Journal Debit Credit Record Clear entry View general journal 8. Deferred revenues-rent On September 1 year 1, Noreen Ltd collected 587,300 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on February 28, year 2, at which time the lease contract may be renewed. Noreen's fiscal year ends on December 31 Required: 1. Prepare journal entries to record the collection of rent on September 1 year and the related adjustment for the amount of rent earned during year 1.0f no entry is required for a transaction event, select "No journal entry required in the first account field) View transaction in Journal entry worksheet Recordent received in advance B. Deferred revenues-rent On September 1, year 1, Noreen Ltd. collected $87,300 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on February 28, year 2. at which time the lease contract may be renewed. Noreen's fiscal year ends on December 31 Required: 1. Prepare journal entries to record the collection of rent on September 1, year 1, and the related adjustment for the amount of rent earned during year 1. (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 Record rent received in advance. Notenter det before credits General Journal Debit Date Sept 01. Year 1 Credit Record entry Clear entry View general Journal 2. If the amount received on September 1, year 1, had covered a period of 18 months, how should Noreen report the deferred rent amount on its statement of financial position as at December 31, year 1? Statement of financial position Year 1 amount on its statement of financial position as at December 31, year 1? monts, How should Noreen report the deferred font Statement et financial position Yout C. Deferred revenues-subscription fees Tremblay Inc.publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $72 in advance for a one year subscription. During the month of April of the current year, Tremblay Inc. sold 120 one-year subscriptions and received payments in advance from all new subscribers. Only 34 of the new subscribers paid their fees in time to receive the April newsletter The other subscribers received the newsletter in May. Required: Prepare journal entries to record the subscription fees received in advance during April of the current year, and the related adjusting entry to recognize the subscription revenue earned during April of the current year, (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transactional Journal entry worksheet 2 > Record the receipt of one-year subscriptions from 120 customers Date General Journal Den Credit April Receny Ches View generala MAR 3 19