Question

Required information [The following information applies to the questions displayed below.) Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $20.0 million in iTunes gift cards in November, and customers redeem $13.0 million of the gift cards in December. Required: 1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).) View transaction list Journal entry worksheet < 1 2 Record the receipt of cash for gift cards. Note: Enter debits before credits. General Journal General Journal Debit Credit Date November 30 Record entry View general journal Clear entry

Answer 1

Please find below table useful to compute desired results: -

Debit(in million) Credit(in million) S 20.00 $ 20.00 3 А 1 Date General Journal 2 Nov. 30 Cash Unearned Revenue (to record the receipt of cash for gift cards) Dec. 31 Unearned Revenue Earned Revenue (record the revenue recognized from redemption of gift cards.) S 13.00 $ 13.00 $20-$13 Unearned Revenue Account Warranties are considered as contigent Liability 10 YES