Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 780,000 Gift certificates sold 2,700,000 Gift certificates redeemed 2,340,000 Gift certificates unredeemed for a long time 120,000 Cost of goods sold 60% What amount should be reported as unearned revenue at year end?

Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 780,000 Gift certificates sold 2,700,000 Gift certificates redeemed 2,340,000 Gift certificates unredeemed for a long time 120,000 Cost of goods sold 60% What amount should be reported as unearned revenue at year end?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...

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Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. Gross profitB. Unearned gift certificates revenue
JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. SalesB. Cost of Sales
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements: What amount should be reported for the year ended December 31 as Gross Profit? Unearned gift certificates revenue?
Problem 3: JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 250,000 Gift certificates sold 1,745,000 1,483,250 80,000 25% Gift certificates redeemed Gift certificates which expired Gross profit rate based on cost Requirements: 8. What amount should be reported for the year ended December 31 as: A. Sales В. Cost of Sales Gross profit D. Unearned gift certificates revenue C.
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements:8. What amount should be reported for the year ended December 31 as:A. SalesB. Cost of Sales
Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized. Information for the current year is as follows: Unearned revenue, January 1, 2013 Gift certificates sold 650,000 2,250,000 1,950,000 100,000 Gift certificates redeemed Gift certificates expected not to be redeemed Cost of goods sold 60% On December 31, 2013, what amount should be reported as unearned revenue?
Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000
Please show your solution in good accounting form. Thank you! JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. Cost of Sales
On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit customer with credit terms of 1/10, n/30. Assume the sale is not subject to tax. Select the correct entry to record the sale on October 12. Multiple Choice Account Name Debit Credit Accounts Receivable 53,000 Sales 53,000 Account Name Debit Credit Accounts Receivable 53,000 Sales Discounts 530 Sales 52,470 Account Name Debit Credit Cash 53,000 Sales 53,000 Account Name Debit Credit Sales 53,000 Sales Discounts 530 Accounts Receivable 52,470
7. Rabiya Company records purchases at gross amount but wishes to change to recording purchases net of purchase discounts. Discounts available on purchases for the current year amount to P20,000. Of this amount, P2,000 is still available in the accounts payable balance. The balances in the accounts as of and for the year ended December 31, before conversion are: Purchases 1,000,000 Purchase discounts taken 8,000 300,000 Accounts payable What is the balance of accounts payable on December 31 after the conversion? a. 298,000 b. 292,000 c. 288,000 d. 282,000
12. Silver Co. sold merchandise to Bronze Co. on account, P23,000, terms 2/15, net 45. The cost of the merchandise sold is P18,500. Silver Co. issued a credit memorandum for P2,500 for merchandise returned that originally cost P1,900. The Bronze Co. paid the invoice within the discount period. What is amount of net sales from the above transactions? P20,090 b. P20,500 a. C. P3,490 d. P23,000