Question

PLEASE POST EXCEL SPREADSHEET Record the following transactions in the financial statements effects template below. Company...

PLEASE POST EXCEL SPREADSHEET

  1. Record the following transactions in the financial statements effects template below.
  1. Company receives $6,000 from the sale of gift certificates.
  2. Customers used $5,700 gift certificates. The cost of the inventory sold is $3,900.
  3. The balance of the gift certificates expire unused.

Balance Sheet

Income Statement

Transaction

Cash Asset

+

Noncash Assets

=

Liabil-

ities

+

Contrib. Capital

+

Earned

Capital

Rev-enues

–

Expen-ses

=

Net

Income

a)

=

–

=

b)

=

–

=

c)

=

–

=
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Answer #1
Balance Sheet Income Statement
Transactions Cash + Non Cash Assets = Liabilities+ Contributed Earned Revenues- Expenses= Net Income
Capital + Capital
a. 6000 6000
b. -3900 -5700 1800 5700 3900 1800
c. -300 300 300 0 300
Nnote:
Unearned revenue is recognized for $ 6000 in a. transaction.
Revenue recognized for gift redeemed $ 5700 and cost of goods sold recorded as expenses $3900 and reduce the inventory balance $ 3900. Net income of $ 1800 (5700-3900) will increase the equity.
Expired certificate will be considered as revenue for the period.
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