Question

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 $19.3 million in iTunes gift cards in November, and customers redeem $12.3 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. Date General Journal Debit Credit November 30 Record entry Clear entry View general journal

Answer 1

Nov 30	Cash	19,300,000
	Unearned revenue		19,300,000
Dec 31	Unearned revenue	12,300,000
	Sales revenue		12,300,000

Deferred revenue = 19,300,000-12,300,000

= 7,000,000

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