Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with this problem. thanks. The following facts relate to gift cards sold by Sunbru Coffee Company during 2018 Sunbru's fiscal year ends on
please help with this problem. thanks.
The following facts relate to gift cards sold by Sunbru Coffee Company during 2018 Sunbru's fiscal year ends on December 31. (a.) In October 2018, sold $2,300 of gift cards, and redeemed $430 of those gift card (b.) In November 2018, sold $3,300 of gift cards, and redeemed $1,330 of October cards and $630 of November gift cards. (c.) In December 2018, sold $2,300 of gift cards, and redeemed $130 of October gift cards, $1,300 of November gift cards, and $330 of December gift cards. (d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gif card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the deferred revenue liability to be reported if the December 31, 2018, balance sheet. Prepare the relevant T-account information to support your answer. Record the sales of the gift cards at December 2018 Note: Enter debits before credits. Transaction General Journal Debit Credit General Journal Gift Card Revenue T account Determine the balance of the deferred revenue liability to be reported in the December 3 Gift card revenue General Journal Gift Card Revenue T account Prepare the relevant T-account information to support your answer. Deferred Gift Card Revenue Beg. Bal. + End. Bal 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