Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 7, Problem 7.11E
Exercise 7.11
LO 3
Unearned revenues-customer deposits NightWotmdsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a deposit of $60 per keg; deposits are recorded in the Keg Deposits account.
Required:
- Where on the balance sheet will the Keg Deposits account be found? Explain your answer.
- Use the horizontal model (or write the
journal entry ) to show the effect of giving a keg deposit refund to a customer for one keg. - A keg use analyst who works for NightWoundsTime estimates that 200 kegs for which deposits were received during the year will never be returned. What accounting, if any, would be appropriate for the deposits associated with these kegs?
- Describe the accounting that would be appropriate for the cost of the kegs that are purchased and used by NightWoundsTime Brewing Co., including how to account for unreturned kegs.
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Problem 7.6A (Algo) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-2.
7-4
Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax
The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using
American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Royal Gift Shop also
grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During
February 20X1, Royal Gift Shop engaged in the following transactions:
DATE
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Feb. 1 Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $3,800, with a 25 percent trade
discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15.
15 Recorded cash sales for the period from February 1 to February…
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Question 43
Paying the minimum amount every month on a credit card will
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pay a large percentage of the total amount owed every month
make the final amount paid substantlally higher than the amount initlally charged
O Help the cardholder create a plan for paying off a credit card in a decent amount of time.
Allow the card holder to avoid paying any interest charges.
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Chapter 7 Solutions
Accounting: What the Numbers Mean
Ch. 7 - Prob. 7.1MECh. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4MECh. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6ECh. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...
Ch. 7 - Exercise 7.11 LO 3 Unearned revenues-customer...Ch. 7 - Exercise 7.12 LO 3 Unearned revenues-ticket sales...Ch. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Exercise 7.21 LO 4. 5, 8 Transaction...Ch. 7 - Prob. 7.22ECh. 7 - Prob. 7.23ECh. 7 - Prob. 7.24ECh. 7 - Prob. 7.25PCh. 7 - Problem 7.26 LO 3 Unearned revenues-subscription...Ch. 7 - Prob. 7.27PCh. 7 - Prob. 7.28PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33CCh. 7 - Prob. 7.34CCh. 7 - Prob. 7.35C
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