p15 Siomai Corp. sells gift certificates redeemable only when merchandise is purchased. Thecertificates have an expiration date two years after issuance. Upon redemption or expiration,Siomai recognizes the unearned revenue as realized. Data for the year are as follows:O Unearned revenue, January 1, 2021- P3,000,000O Gift certificates sold- P10,000,000O Gift certificates redeemed- P8,200,000O Expired gift certificates- P600,000O Cost of goods sold- 60%On December 31, 2021, Siomai should report unearned revenues of: *

Unearned revenue on December 31, 2021 = beginning unearned revenue + gift certificate sold - gift…

Answered: Siomai Corp. sells gift certificates…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

See similar textbooks

Similar questions

Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.
Siomai Corp. sells gift certificates redeemable only when merchandise is purchased. The certificates have an expiration date two years after issuance. Upon redemption or expiration, Siomai recognizes the unearned revenue as realized. Data for the year are as follows:  Unearned revenue, January 1, 2021- P3,000,000 Gift certificates sold- P10,000,000  Gift certificates redeemed- P8,200,000 Expired gift certificates- P600,000  Cost of goods sold- 60% On December 31, 2021, Siomai should report unearned revenues of:
Cucu Company sells gift certificates redeemable only when merchandise is purchase. The certificates have anexpiration date two years after issuance date. Upon redemption or expiration, Cucu Company recognizes theunearned revenue as realized. Data for 2020 are as follows:Unearned revenue, 1/1/2020 P800,000Gift certificates sold 4,000,000Gift certificates redeemed 3,200,000Expired gift certificates 400,000Cost of goods sold 60%At December 31, 2020, what amount of current liability should Cucu report in relation to gift certificates?a. P1,200,000 b. P800,000 c. P400,000 d. d. P0
ABC Company sells gift certificates which can be use to purchase their merchandise. The gift certificates have an expiration date of 3 years from the date of issuance. Upon redemption or expiration, ABC recognizes the unearned revenue as realized. Some data are as follows:Unearned revenue from gift certificates outstanding, January 1 - P 500,000Gift certificates sold during 2019 - P 400,000The Unearned revenue from gift certificates outstanding has decreased by P 200,000 during the year. The gift certificates redeemed during the year was twice the value of the gift certificates expired for the year 2019.The gross profit rate based on sales is 30%.How much revenue must be recognized related to the gift certificates redeemed during the year 2019?
ABC Company sells gift certificates which can be use to purchase their merchandise. The gift certificates have an expiration date of 3 years from the date of issuance. Upon redemption or expiration, ABC recognizes the unearned revenue as realized. Some data are as follows:Unearned revenue from gift certificates outstanding, January 1 - P 500,000Gift certificates sold during 2019 - P 400,000The Unearned revenue from gift certificates outstanding has decreased by P 200,000 during the year. The gift certificates redeemed during the year was twice the value of the gift certificates expired for the year 2019.The gross profit rate based on sales is 30%.How much is the liability outstanding related to gift certificates not yet redeemed as of December 31,2019? How much revenue must be recognized related to the gift certificates redeemed during the year 2019?
Regal Company sells gift certificates, redeemable for store merchandise. The gift certificates have no expiration date. The entity has the following information pertaining to the gift certificate sales and redemptions: Unearned revenue on January 1, 2020 = 750,000; 2020 sales = 2,500,000; 2020 redemptions of prior year sales = 250,000; 2020 redemptions of current year sales = 1,750,000. What amount should be reported as unearned revenue on December 31, 2020?
1. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. WALNUT has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000. In its December 31, 2021 statement of financial position, what amount should WALNUT report as unearned revenue? 2.On December 31, 2021, PISTACHIO Company had outstanding ₱20 million face value convertible bonds maturing on December 31, 2024. Interest is payable annually on December 31. Each ₱1,000 bond is convertible into 60 shares of PISTACHIO’s ₱P10 par ordinary shares. The unamortized premium balance on December 31, 2021 is ₱350,000. The balance of Share premium arising from bond conversion privilege is ₱640,000. On this date, assume that on December 31, 2021, PISTACHIO retired the ₱2,000,000 issue…
4. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. WALNUT has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000. In its December 31, 2021 statement of financial position, what amount should WALNUT report as unearned revenue?
4. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. WALNUT has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000. In its December 31, 2021 statement of financial position, what amount should WALNUT report as unearned revenue? a. ₱ 800,000 b. ₱ 400,000 c. ₱ 1,000,000 c. ₱ 600,000

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS