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es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1

es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1
Transcribed Image Text:es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 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 $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1
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