this is all one question A$.$ Deferred revenues$-$customer deposits

Eastern Brewing Company $($EBC$)$ distrioutes its products in an aluminum keg. Customers are charged a deposit or $$22$ per keg, and

deposits recelved from customers are recorded in the keg deposits account.

Required:

$1$ This part of the question is not part of your Connect assignment.

$2$ A production speclallst who works for EBC estimates that $85$kegs for which deposits were recelved curing the year will never be

returned. How would the deposits related to these $85$ kegs be reflected in the company's financlal statements? $($If no entry is require.

for a transaction$/$event$,$ select $"$No journal entry required" in the first account fleld.$)$

B$.$ Deferred revenues$-$rent

On September $1,$ year $1,$ Noreen Ltd$.$ collected $$88,200$ in cash from its tenant as an advance rent payment on its store location. The

slx$-$month lease period ends on February $28,$ year $2$ at which time the lease contract may be renewed. Noreen's fiscal year ends on December $31.$

Required:

Prepare joumal entrles to record the collection of rent on September $1,$ year $1,$ and the related acjustment for the amount of rent

earned during year $1.($If no entry is required for a transactlon$/$event$,$ select $"$No journal entry required" In the first account fleld.$)$

I

$2$ If the amount recelved on September $1,$ year $1,$ had covered a period of $18$ months, how should Noreen report the deferred rent

amount on its statement of financlal position as at December $31,$ year $1?$

C$.$ Deferred revenues$-$subscription tees

Tremblay inc. pubilshes a monthly newsletter for retall marketing managers and requires its subscribers to pay $$84$ in advance for a

one$-$year subscription. During the month of Aprll of the current year, Tremblay inc. $501d130$ one$-$year subscriptions and recelved

payments in advance from all new subscribers. Only $55$ of the new subscribers paid their fees in time to recelve the Aprli newsietter. The other subscroers recelved the newsletter in May.

Required:

Prepare journal entrles to record the subscription fees recelved in advance during Apn of the current year, and the related adjusting

entry to recognize the subscription revenue eamed during Aprll of the current year. $($If no entry is required for a transaction$/$event$,$

$"$No journal entry required" in the first account fleid.$).$

I

Journal entry worksheet

Record the receipt of one$-$year subscriptions from $130$ customers.

Note: fitir debis bafore credis.