On December 5, 2019, Super Circuit Store sold gift certificates totaling $12,000. By December 31, 2019, all
Question:
On December 5, 2019, Super Circuit Store sold gift certificates totaling $12,000. By December 31, 2019, all but $2,125 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2020.
Required:
1. Prepare journal entries on Super Circuit’s books to reflect the preceding transactions.
2. How would the gift certificates be reported on Super Circuit’s balance sheet on December 31, 2019?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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1 2019 Dec 5 Cash 12000 Unearned Revenue Gift Certificates 12000 ...View the full answer
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Related Book For 
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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