Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM!!!
Transcribed Image Text:Presented below are selected transactions of Cullumber Restaurant for the month ending August 31, 2025.
a.
b.
Cullumber sells 84 gift cards at $72 per gift card and 51 of the gift cards are redeemed by year end. It is estimated that 10 of
the gift cards will not be redeemed.
Cullumber 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 Cullumber 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 O decimal places, e.g. 5,125.)
Date
August 2025
August 2025
Account Titles and Explanation
Cash
Unearned Revenue
(To record the sale of 84 gift cards)
Unearned Revenue
Sales Revenue
August 2025
(To record redemption and breakage of gift cards)
Cash
Unearned Revenue
Debit
6048
3672
300
Credit
6048
3672
300
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