Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During Its first two months of operation, the restaurant sold gift cards in various amounts totaling $1,750. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $636 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (In summary form) the $1,750 In gift cards sold (keeping in mind that, In actuality, each sale of a gift card or a meal would be recorded Indvidually) and the $636 In gift cards redeemed. (Hint The $636 Includes a 6 % sales tax of $36.) (If no entry Is required for a trensactlon/event, select "No Journel Entry Required" in the first account fleld.) Required: 1. & 2. Record (in summary form) the $1,750 In gift cards sold (keeping In mind that, In actuality, each sale of a gift card or a meal would be recorded Indlvidually) and the $636 in gift cards redeemed. (Hint The $636 Includes a 6 % sales tax of $36.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) View transaction list Journal entry worksheet > 1 2 Record the cash received for gift cards Note: Enter debits before credits Transaction General Journal Debit Credit Clear entry Record entry View general jounal View transaction list Journal entry worksheet 1 2 Record the redemption of gift cards. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) to be reported on the December 31 balance sheet Deferred revenue Problem 8-6B Record deferred revenues and sales taxes (LO8-4) Logan's Roadhouse opened a new restaurant in November. During Its first two months of operation, the restaurant sold gift cards in various amounts totaling $1,750. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $636 were presented for redemption during the first two months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 6%, assessed at the time meals (not gift cards) are purchased. Logan's will remit sales taxes in January. Required: 1. & 2. Record (In summary form) the $1,750 In gift cards sold (keeping in mind that, In actuality, each sale of a gift card or a meal would be recorded Indvidually) and the $636 In gift cards redeemed. (Hint The $636 Includes a 6 % sales tax of $36.) (If no entry Is required for a trensactlon/event, select "No Journel Entry Required" in the first account fleld.) Required: 1. & 2. Record (in summary form) the $1,750 In gift cards sold (keeping In mind that, In actuality, each sale of a gift card or a meal would be recorded Indlvidually) and the $636 in gift cards redeemed. (Hint The $636 Includes a 6 % sales tax of $36.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) View transaction list Journal entry worksheet > 1 2 Record the cash received for gift cards Note: Enter debits before credits Transaction General Journal Debit Credit Clear entry Record entry View general jounal View transaction list Journal entry worksheet 1 2 Record the redemption of gift cards. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) to be reported on the December 31 balance sheet Deferred revenue