the sales tax liability on req 3 concurrent is not correct
Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $8,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 90% of gift cards are redeemed within one year. Gift cards totaling $2.800 were presented for redemption during 2021 for meals having a total price of $3,200. The sales tax rate on restaurant sales is 4%. assessed at the time meals (not gift cards] are purchased. Sales taxes will be remitted in January. Required: 1. Prepare the appropriatejournal entries {in summary form) for the gi cards and meals sold during 2021 [keeping in mind that. in actuality. each sale of a gift card or a meal would be recorded individually). 2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet. 3. What is the appropriate classication (current or noncurrent) of the liabilities at December 31, 2021? Required 1 Required 2 Required 3 Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually). (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 > Record the gift cards and meals sold during 2021. Note: Enter debits before credits. Event General Journal Debit Credit 1 $ $ 8,200 Deferred gift card revenue 8,200 Record entry Clear entry View general journalRequired 1 Required 2 Required 3 Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually). (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 2 Record redemption of gift cards and meals sold in 2021 and redeemed in 2021. Note: Enter debits before credits. Event General Journal Debit Credit 2 Cash 528 Deferred gift card revenue 2,800 Sales revenue 3,200 Sales taxes payable 128 Record entry Clear entry View general journalComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet. Liability $ 5,400 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2021? Sales tax liability - current $ 128 Sales tax liability - noncurrent $ 2,800 Liability gift cards and meals - current $ 4,580 Liability gift cards and meals - noncurrent $ 820
