Listed below are selected transactions of Carla Department Store for the current year ending December 31. 1. 2. 3. 4. On December 5, the store received $470 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. During December, cash sales totaled $819,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. On December 10, the store purchased for cash three delivery trucks for $109,000. The trucks were purchased in a state that applies a 5% sales tax. The store sold 29 gift cards for $100 per card. At year-end, 24 of the gift cards are redeemed. Carla expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (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 journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Debit Credit
Listed below are selected transactions of Carla Department Store for the current year ending December 31. 1. 2. 3. 4. On December 5, the store received $470 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. During December, cash sales totaled $819,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. On December 10, the store purchased for cash three delivery trucks for $109,000. The trucks were purchased in a state that applies a 5% sales tax. The store sold 29 gift cards for $100 per card. At year-end, 24 of the gift cards are redeemed. Carla expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (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 journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.) Date Account Titles and Explanation Debit Credit
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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Intermediate Accounting 105
May I please have explanations and calculations to this exercise
Thank you
Transcribed Image Text:Listed below are selected transactions of Carla Department Store for the current year ending December 31.
1.
2.
3.
4.
On December 5, the store received $470 from the Selig Players as a deposit to be returned after certain furniture to be used
in stage production was returned on January 15.
During December, cash sales totaled $819,000, which includes the 5% sales tax that must be remitted to the state by the
fifteenth day of the following month.
On December 10, the store purchased for cash three delivery trucks for $109,000. The trucks were purchased in a state that
applies a 5% sales tax.
The store sold 29 gift cards for $100 per card. At year-end, 24 of the gift cards are redeemed. Carla expects three of the cards
to expire unused.
Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries
relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity,
assume that adjusting entries are recorded only once a year on December 31. (Ignore Cost of Goods Sold.) (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 journal entries in the order presented in the problem. List all debit entries before credit entries. Round intermediate
calculations to 4 decimal places, e.g. 0.2345 and fimal answer to O decimal places, e.g. 2,1324.)
Date
Account Titles and Explanation
(To record sale of 29 gift cards)
(To record redemption and expected breakage revenue)
Debit
Credit
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