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Problem 8-6A (Algo) Record deferred revenues and sales taxes (L08-4) Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint The $832 includes a 4% sales tax of $32.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift. card individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 12 Record the $2,600 in gift cards sold. > Journal entry worksheet < 1 2 Record the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry < Req 1 and 2 Complete this question by entering your answers in the tabs below. Debit Credit View general Journal Req 3 > >

Problem 8-6A (Algo) Record deferred revenues and sales taxes (L08-4) Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint The $832 includes a 4% sales tax of $32.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift. card individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 12 Record the $2,600 in gift cards sold. > Journal entry worksheet < 1 2 Record the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry < Req 1 and 2 Complete this question by entering your answers in the tabs below. Debit Credit View general Journal Req 3 > >

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 50P
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Problem 8-6A (Algo) Record deferred revenues and sales taxes (LO8-4) Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint. The $832 includes a 4% sales tax of $32.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Req 3 View transaction list Journal entry worksheet < 1 2 Record the $2,600 in gift cards sold. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry < Req 1 and 2 Debit Credit View general Journal Req 3 > > Req 1 and 2 Journal entry worksheet < 1 2 Req 3 Deferred revenue Record the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) Note: Enter debits before credits. Transaction 2 Record entry Complete this question by entering your answers in the tabs below. General Journal Clear entry < Req 1 and 2 < Req 1 and 2 Debit Req 3 > Credit Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. View general Journal Req 3 >
Transcribed Image Text:Problem 8-6A (Algo) Record deferred revenues and sales taxes (LO8-4) Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,600. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $832 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint. The $832 includes a 4% sales tax of $32.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Record (in summary form) the $2,600 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Req 3 View transaction list Journal entry worksheet < 1 2 Record the $2,600 in gift cards sold. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry < Req 1 and 2 Debit Credit View general Journal Req 3 > > Req 1 and 2 Journal entry worksheet < 1 2 Req 3 Deferred revenue Record the $832 in gift cards redeemed. (Hint: The $832 includes a 4% sales tax of $32.) Note: Enter debits before credits. Transaction 2 Record entry Complete this question by entering your answers in the tabs below. General Journal Clear entry < Req 1 and 2 < Req 1 and 2 Debit Req 3 > Credit Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. View general Journal Req 3 >
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