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 $37 per keg, and deposits received from customers are recorded in the keg deposits account Required: 1. This part of the question is not part of your Connect assignment 2. A production specialist who works for EBC estimates that 55 kegs for which deposits were received during the year will never be returned. How would the deposits related to these 55 kegs be reflected in the company's financial statements? (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 2. A production specialist who works for EBC estimates that 55 kegs for which deposits were received during the year will never be returned. How would the deposits related to these 55 kegs be reflected in the company's financial statements? (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 Record deposit revenue. Note: Enter debits before credits Transaction Debit General Journal Credit Record entry Clear entry View general Journal B. Deferred revenues-rent On September 1 year 1, Noreen Ltd. collected $82,800 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. Note: Enter debits before credits Debit Credit General Journal Date Sept 01, Year 1 View general journal Record entry Clear entry On September 1, year 1, Noreen Ltd. collected $82,800 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
