Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift
Posted: Sun Jul 03, 2022 1:16 pm
Texas Roadhouse opened a new restaurant inOctober. During its first three months of operation, the restaurantsold gift cards in various amounts totaling $1,700. The cards areredeemable for meals within one year of the purchase date. Giftcards totaling $624 were presented for redemption during the firstthree months of operation prior to year-end on December 31. Thesales tax rate on restaurant sales is 4%, assessed at the timemeals (not gift cards) are purchased. Texas Roadhouse will remitsales taxes in January.
Required:
1. & 2. Record (in summary form) the$1,700 in gift cards sold (keeping in mind that, in actuality, thefirm would record each sale of a gift card individually) and the$624 in gift cards redeemed. (Hint: The $624 includes a 4%sales tax of $24.) (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
3. Determine the balance in the DeferredRevenue account (remaining liability for gift cards) TexasRoadhouse will report on the December 31 balance sheet.
Journal entry worksheet < 1 2 Record the cash received for gift cards. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
Journal entry worksheet 1 2 < Record the redemption of gift cards. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >
3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Deferred revenue
Required:
1. & 2. Record (in summary form) the$1,700 in gift cards sold (keeping in mind that, in actuality, thefirm would record each sale of a gift card individually) and the$624 in gift cards redeemed. (Hint: The $624 includes a 4%sales tax of $24.) (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
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Journal entry worksheet 1 2 < Record the redemption of gift cards. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >
3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Deferred revenue