Question

During May 2009, its first month of operation, Pizza Palace sold 200 coupon books for $20 each. The books contain four coupons, each of which can be exchanged for a large pizza.
Required:
(a) What journal entry would Pizza Palace make for the sale of the 200 coupon books?
(b) During the week of June 8, 27 coupons were redeemed. Prepare the journal entry to account for the exchange of the coupons for pizzas.
(c) Pizza Palace prepares quarterly financial statements. At the end of the third quarter on January 31, 2010, 67 coupons remained unredeemed. How should these coupon books be presented on Pizza Palace’s financial statements?


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  • CreatedMarch 27, 2015
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