c. Use the financial statement effects template to record the gift card activity during the fiscal year ended February 2, 2019. Ignore sales tax and returns. Details are as follows. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. $ millions Gift card liability, February 3, 2018 $727 Gift cards issued during current period but not redeemed 645 Revenue recognized from beginning liability Gift card liability, February 2, 2019 (532) $840 ($ millions) Transaction May: Gift card sale May: Gift card redemption Cash N/A Cash Asset 645✓ N/A 0✓ Inventory Noncash Assets 0 Balance Sheet Liabilities Contrib. Capital Earned Capital 645✓ 0 0 Unearned Revenue N/A ✓ N/A ✓ N/A x = -532✓ 0 ✓ 0 x Unearned Revenue N/A ÷ Retained Earnings Revenue Income Statement Expenses Net Income 0 0 Revenues 0 N/A 532 ▼ ÷ COGS x = ×
c. Use the financial statement effects template to record the gift card activity during the fiscal year ended February 2, 2019. Ignore sales tax and returns. Details are as follows. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. $ millions Gift card liability, February 3, 2018 $727 Gift cards issued during current period but not redeemed 645 Revenue recognized from beginning liability Gift card liability, February 2, 2019 (532) $840 ($ millions) Transaction May: Gift card sale May: Gift card redemption Cash N/A Cash Asset 645✓ N/A 0✓ Inventory Noncash Assets 0 Balance Sheet Liabilities Contrib. Capital Earned Capital 645✓ 0 0 Unearned Revenue N/A ✓ N/A ✓ N/A x = -532✓ 0 ✓ 0 x Unearned Revenue N/A ÷ Retained Earnings Revenue Income Statement Expenses Net Income 0 0 Revenues 0 N/A 532 ▼ ÷ COGS x = ×
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 5C: Receivables Issues Magrath Company has an operating cycle of less than one year and provides credit...
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please help...need help finding noncash assets
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