QUESTION 2

PART 1

1. Record Crane Company's journal entries for the following events.Use the following account abbreviations: AR = accounts receivable; CASH = cash; REV = Sales revenue; ALL = allowance for doubtful accounts; RET = returns; DISC = sales discount.
3. Note: in part c, two accounts are debited.Enter these in alphabetical order, for example, ALL before CASH.

• On July 1, Crane Company sold merchandise on account to Stacey Inc. for $25,200, terms 4/10, n/30.
• Debit:
• Credit:
• On July 8, Stacey Inc. returned merchandise to Crane Company for a credit refund of $2,500.
• Debit:
• Credit:
• On July 11, Stacey Inc. paid for the merchandise.
• Debit:
• Debit:
• Credit:

PART 2

1. Bramble University sells 3,500 season basketball tickets at $80 each for its 10-game home schedule. Bramble considers revenue to be earned proportionately as each game is played, regardless of how many ticket-holders attend.For the journal entries below, use the following account abbreviations:
2. REV = revenues; AR = Accounts Receivable; CASH = Cash; UNREV = unearned revenue; PRE= Prepaid tickets.

• Show the journal entry to record the sale of the 3,500 season tickets.
• Debit:
• Credit:
• Show the journal entry to record the revenue recognized after Bramble's basketball team plays the first home game.
• Debit:
• Credit:
• After the 3rd game is completed, how muchtotal revenuewill Bramble have recognized from the season tickets?
• After the 6th game is completed, what is Bramble'sremaining liabilityfor unplayed games?

PART 3

1. Myers & Briggs, Inc. pays its employees biweekly on Fridays.Employees work a 5-day week, Monday through Friday.When the company prepares its quarterly financial statements on June 30, which is a Wednesday, employees have worked three days for which they have not yet received payment.Total wages for those three days are $72,000.For the journal entries below, use the following account abbreviations:
2. CASH = Cash; UNREV = unearned revenue; WP = Wages Payable; PRE = Prepaid wages; WEXP = Wage expense.
4. Note: in part b, two accounts are debited.Enter these in alphabetical order, for example, CASH before PRE.

• Show the adjusting journal entry Myers & Briggs must record on June 30.
• Debit:
• Credit:
• On Friday, July 9, Myers & Briggs makes its next payroll payment of $240,000. Show the journal entry to record this payment.
• Debit:
• Debit:
• Credit: