Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Your answer is partially correct. Presented below are selected transactions of Wildhorse Restaurant for the month ending August 31,2025. a. Wildhorse sells 80 gift cards
Your answer is partially correct. Presented below are selected transactions of Wildhorse Restaurant for the month ending August 31,2025. a. Wildhorse sells 80 gift cards at $70 per gift card and 55 of the gift cards are redeemed by year end. It is estimated that 10 of the gift cards will not be redeemed. b. Wildhorse 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 Wildhorse 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 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Cash 5600 Unearned Gift Card Revenue (To record the sale of 80 gift cards) Unearned Gift Card Revenue \begin{tabular}{||c||} \hline \hline 4550 \\ \hline \hline \end{tabular} Sales Revenue Sales Revenue (Breakage) (To record redemption and breakage of gift cards) Cash 300 Refundable Deposit Liability
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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