Valix Finacc vol 2 Problem 1-36

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-36

1. Cash                                                                                                  900,000

            Gift certificates payable                                                                               900,000

2. Gift certificates payable                                                                        780,000

            Sales                                                                                                         780,000

3. Gift certificates payable                                                                         40,000

            Forfeited gift certificates                                                                                 40,000

Unearned revenue – January 1                                                                                 260,000

Add: Gift certificates sold                                                                                        900,000

Total                                                                                                                  1,160,000

Less: Gift certificates redeemed                                                  780,000

         Expired gift certificates                                                            40,000             820,000

Unearned revenue – December 31                                                                            340,000