Circuittown commenced a gift card program

How much revenue will CircuitTown recognize with respect to March gift card sales during ? What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, ? In class we discuss broad revenue recognition principles and aselection of specific situations e. The purpose of these three cases is to exposeyou to the accounting for revenues in other unique situations inaddition to those discussed in class. For each case, you will needto research online the appropriate accounting under current, notfuture, revenue recognition rules and then answer the questionsbelow.

Escheat laws in Delaware require that unclaimed property,including unused gift card balances, must be turned over to thestate after it becomes clear the customer will not redeem theremaining balance. Gift cards are exempt from escheat laws inMaryland. How much revenue should Mr. Pingrecognize in for gift card sales in Maryland? Pingrecognize in for gift card sales in Delaware? Then provide the journal entries that Mr. Ping would recordduring for these gift cards.

Genco Import Company is an Internet-based online shoppingplatform that sells products to customers on behalf of varioussuppliers. Suppliers submit their product offerings,specifications, and prices to Genco, which Genco displays on itswebsite. At the time of each customer order, Genco collects paymentfrom the customer and directs the supplier to ship directly to thecustomer.

How much revenue should Gencorecognize during for these sales? Justify your answer usingthe guidelines in EITF Justify your answer using theguidelines in EITF Given the answer to 1above, how much revenue should Bubbles recognize in formattress sales? Kline Sisters Company operates a gift shop where peak sales andactivity occur in the months of December and January.

Dataregarding the store's operations follow:. Assume interest accrues at the beginning of the month andis paid at the end of the month. All accounts receivable from December 31 will be collected inJanuary and all accounts payable at December 31 will be paid inJanuary. Prepare the following budgets for each month January, February,March and Total for the quarter in good form inexcel with proper use of formulas and formatting: a. Prepare a Schedule of Expected CashCollections.

Prepare a Schedule of Expected Cash Collections. Formatting is as important as thecorrect answer for this project. Your spreadsheet should be in goodform, presented and printed clearly, and labeled appropriately. Your print out should be in report format and clearly presented. Each budget should not span more than one page, i. A: Inter-period tax allocation: The effect of tax on accounting events are recognized in the year in wh Q: Why are time-based depreciation methods used more frequently than activity-based methods?

Q: journalize the adjusting entry needed on Dec 31 for each situation. Use the letters to label the jou A: journalize the adjusting entry needed on Dec 31 for each situation is as follows:. Q: Explain how the general classification criteria are applied to leases that involve land. The equipment is expected to be wo A: Entries with respect to equipment are as follows:. Q: Name two loss contingencies that almost always are accrued. A: Contingent Liability Contingent liability is one form of liability that arises based on a particular Q: At the end of the year, Falabella Co.

Q: Explain the accounting for loss carrybacks. A: Loss carryback is an accounting situation where the net operating loss of current year can be set of Q: Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual mai A: Annual maintenance on the machinery:The expenditure of annual maintenance on the machinery is an exa Q: The discount rate influences virtually every amount reported in connection with a lease by both the Q: Presented below are three independent situations.

Situation 1: A company offers a one-year warranty Q: The following data are taken from the records of Alee Company. A: Statement of cash flows:This statement reports all the cash transactions which are responsible for i Q: You have been hired as the new controller for the Ralston Company.

Shortly after joining the company A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for Q: Pretax financial income for Lake Inc.

A: Transaction: The economic events which bring about any changes in the financial items of a business Q: Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct Q: What is a bargain purchase option? How does it differ from other purchase options? A: Purchase option: Purchase option is provision of certain lease contracts which provides the lessee t Q: At the inception of a capital lease, the guaranteed residual value should be a.

Included as part of Q: Data Normalization—Veterinarian Report Using the view for a veterinarian practice designated problem A: Current liabilities: The obligations owed by a company to creditors and suppliers and are to be paid Q: The residual value is the estimated fair value of the leased property at the end of the lease term.

A: Finance lease is also known as capital lease. This is a long term lease agreement in which the lessee Study Resources. Log In. Want to see the step-by-step answer? Want to see this answer and more? Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. Tagged in. A: Click to see the answer. A: Investing activities:. Q: Apply the concepts and procedures of interperiod tax allocation A: Inter-period tax allocation: The effect of tax on accounting events are recognized in the year in wh A: Meaning:.

A: Compute the taxable income :.