1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ikadub [295]
3 years ago
11

In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes bac

k and spends $20 of the gift card to purchase a water bottle. What would be the appropriate journal entry for the customer’s purchase of the water bottle in February?
Business
1 answer:
PtichkaEL [24]3 years ago
7 0

Answer:

Feb. 2021

  Dr Gift Card Liability         $20

     Cr Gift Card Revenue    $20

(to record revenue arisen from oustanding Gift Card Liability)

Explanation:

Under GAAP, the accounting for Gift Card is quite simple. When the gift card are sold, Gift Card Issuer receives Cash (Debit Cash) and assume the Liability (Cr Liability) to anyone owning the gift card for later providing of goods/services priced at the Cash amount that had been received.

It is not until Gift Card is redeemed that Gift Card Issuer is allowed to record revenue (Credit Revenue) as it is an actual point of time when the provide of goods/services takes place. Also at the same time, once the goods/services are provided, they Liability assumed earlier in time through Gift Card issuance will be discharged to the extent of the price of goods/services provided.

You might be interested in
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
g100num [7]
Have no clue sorry that is not the answer
8 0
3 years ago
ANSWER QUICKLY PLEASE: What do certifications show a potential employer? Answer in 3–4 sentences.
Nat2105 [25]

Answer: That you are qualified for the job role

Explanation:

Certifications allows an employees to show a current or future hiring manager that they possess the skill set and expertise needed for the job.

They help the employers hire the most competent and qualified personnel for the job as it shows you know your way around the job. And when that certification is now backed by real world on the job experience, this gives the hiring manager a sense of security.

3 0
3 years ago
"In a Real Estate Limited Partnership, the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property
OlgaM077 [116]

Answer:

Increase interest deductions for the limited partners.

Explanation:

In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.

Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.

When a loan is refinanced at the same interest rate the borrower pays more interest.

For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.

When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.

So the general partner aims to increase the amount of interest paid.

4 0
3 years ago
How is globalization affecting the hospitality industry? Give specific examples of some of the changes.
ludmilkaskok [199]

globalization affect the hospitality directly by the people coming from different countries . either they get cheaper services or they change some stuff for people because different cultures

4 0
3 years ago
A company uses the cost method of accounting for treasury stock. On January 1, the company repurchases 1,000 shares of stock at
Ksivusya [100]

Answer:

The credit on December 31 is to credit Treasury Stock with $15,000.

Explanation:

There are two methods for accounting for Treasury Stock.  The first is the par value method.  With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.

Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.

This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.

3 0
3 years ago
Other questions:
  • TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,500,000 and there are 135,000
    12·1 answer
  • When receiving inventory, you should do which of the following?
    13·1 answer
  • Which of the following is the type of logical database model that treats data as if they were stored in two-dimensional tables?
    6·2 answers
  • Suppose a banking system receives a new deposit of $1,000. If the reserve requirement is 20%, by how much can the total volume o
    14·1 answer
  • You are the owner of a shoe company. You learn that it would be cheaper
    5·1 answer
  • Suppose the town of Boone has a total population of 70,000 people. Of those, 65,000 people are employed. There are 1,000 full-ti
    5·1 answer
  • Describe someone with a "can-do" mindset that you admire. What makes this person a "can-do" person? What obstacles did their "ca
    7·2 answers
  • On December 31, Year 1, Ott Co. had investments in marketable debt securities as follows: Amotized Cost Market value Mann Co. $1
    7·1 answer
  • Which economic system meets the most socialeconomic goals?
    8·1 answer
  • Required information
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!