Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $889,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $533,000. In 2024, $824,000 was refunded and deposits forfeited were $55,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. 2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 1 2 Transaction 1 3 Record the deposits collected. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal >
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2024, deposits collected on containers shipped were $889,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented deposits of $533,000. In 2024, $824,000 was refunded and deposits forfeited were $55,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. 2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024. Note: 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 1 2 Transaction 1 3 Record the deposits collected. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective
containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund
when the container is returned. During 2024, deposits collected on containers shipped were $889,000.
Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2024, represented
deposits of $533,000. In 2024, $824,000 was refunded and deposits forfeited were $55,500.
Required:
1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024.
2. Determine the liability for refundable deposits to be reported on the December 31, 2024, balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2024.
Note: 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
<
1
2
Record the deposits collected.
Transaction
1
3
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Required 2
>
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