Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented below are selected transactions of Lombardino Restaurant for the month ending August 31, 2025. a. Lombardino sells 80 gift cards at $75 per gift
Presented below are selected transactions of Lombardino Restaurant for the month ending August 31, 2025. a. Lombardino sells 80 gift cards at $75 per gift card and 50 of the gift cards are redeemed by year end. It is estimated that 10 of the gift cards will not be redeemed. b. Lombardino accepted a reservation for its private dining room for a rehearsal dinner in September. It received a security deposit of $300, which will be returned after the dinner is held. Prepare entries for the Lombardino transactions. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries. Round intermediate calculations to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 5,125.) Transaction Date Account Titles and Explanation Debit a. August 2025 Cash August 2025 b. August 2025 Unearned Gift Card Revenue (To record the sale of 80 gift cards) Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) (To record redemption and breakage of gift cards) Cash Refundable Deposit Liability 6000 4500 300 Credit 6000 3750 750 300
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