Valix Finacc vol 2 Problem 1-37

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-37

Problem  1-37  Answer  C

Unearned revenue – January 1                                                                               650,000

Add: Gift certificates sold                                                                                      2,250,000

Total                                                                                                                            2,900,000

Less: Gift certificates redeemed                                                  1,950,000

         Expired gift certificates                                                             100,000        2,050,000

Unearned revenue – December 31                                                                       850,000