User Account

All Pages

Circuittown considers gift cards

Assignment Help Accounting Basics
Reference no: EM13881419

1.CircuitTown commenced a gift card program in January 2013 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of 2013 before discontinuing further gift card sales. During 2013, gift card redemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. (For purposes of this question, assume that gift card sales occur halfway through each month on average.)

Required:
1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2013?
2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.
3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2013?4. What liability for unearned revenue associated with gift card sales would CircuitTown show as of December 31, 2013?

Reference no: EM13881419

Questions Cloud

Did the companys dividends exceed its net income : Is the company financed mainly by creditors or stockholders? Which financial statement indicates this? Was the company profitable? Which financial statement indicates this? By how much did cash increase (decrease)? Which financial statement would rep..
The sales tax rate on restaurant sales : 1.Bavarian Bar and Grill opened for business in November 2013.
Professional networking websites such as linkedin : Discuss three (3) reasons for utilizing professional networking during the job-hunting process. Note: Some potential points to consider include: developing a professional network, experiences you had presenting your resume at job fairs, or interactio..
Is he right that democracies have no values : What do you think of Socrates negative view of democracy? Is he right that democracies have no values? If he isn't right, how would values be established in a democracy
Circuittown considers gift cards : CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale.
Summarize the article''s short-term goals and long-term goals : From the article "Creating the Future," clearly summarize the article's short-term goals and long-term goals.  Select a future technology. Predict the social, environmental, ethical, and energy-use implications of the implementation and wide ..
What would elis ending cash balance : Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of long-term bonds versus short-term bonds?
Activities necessary to build an ex-perimental model : activities necessary to build an ex-perimental model
Write an android app which will sense the room temperature : Write an Android app which will sense the room temperature. Write the Cell identity Gsm and Carrier Configuration Manager Class code.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the unadjusted rate of return

What is the unadjusted rate of return?

  Compute the npv of the cash flows

Tax cash flows represent taxable income in the year received, compute the NPV of the cash flows.

  Margin of safety in dollars basics

For Bobby Company, sales is $1,000,000 (5,000 units), fixed expenses are $300,000, and the contribution margin per unit is $80. What is the margin of safety in dollars?

  Purchase price and sales price comparison

This question belongs to Accounting and it is about accounting review of an Australian company Woolworths Ltd. This exacting question is purchase price and sales price comparison of an investment by Woolworths Ltd

  Complete the following exercise and respond to at least two

complete the following exercise and respond to at least two of your fellow students postings. gallatin carpet cleaning

  Statements and the internal controls of financial reporting

An integrated audit combines the audit of the financial statements and the internal controls of financial reporting. Please address the following topics:

  Intercultural business communications

Providing language and cultural training for employees is big business. If you were going to write a class on how language affects intercultural business communications, what would your lesson plan look like?

  What will be the balance in the fund

Pooh wants to purchase a car on Jan 1, 20X5. She plans to make five payments of $700 each year, beginning Jan 1,20X0 in a money market fund that earns 9%. What will be the balance in the fund on Jan 1, 20X5?

  Total principal and interest payments

Prepare an amortization schedule for the following loan, for the first three months of the loan: $20,000 car loan, payments are $444.89 for 5 years, payable monthly at 12%. What are the total principal and interest payments for the 5 year loan?

  Discuss the compensation packages for accounting

discuss the compensation packages for accounting professionals. is the compensation commensurate with the

  Justify effective funding strategies

Please explain, identify, and justify effective funding strategies in the following areas:

  Pro series corporation has requested that you perform a

pro series corporation has requested that you perform a vertical analysis of its balance sheet. each item listed must

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd