Reference no: EM132646176

Question 1: Provide the journal entry or entries (accounts and amounts) needed to record each transaction

a) Paid $10,646 million cash related to accounts payable due to suppliers.

b) Received $480 million in cash from customers purchasing gift cards.

c) Customers redeemed $425 million in gift cards during the current period. The cost of the goods purchased with these gift cards was $283 million.

d) Incurred $76 million in interest expense and paid the entire amount in cash during the current period.

e) Paid $713 million cash for advertising. Of the $713 million, $687 million related to ads that ran in the current period and $26 million related to ads that had not yet run at the end of the period (i.e., $26 million was still prepaid at the end of the period).

f) Incurred $538 million in federal and state income taxes related to the current year's revenues. Of this $538 million, $490 million was paid in cash to the relevant taxing agencies by the end of the period and $48 million was still owed at the end of the period.

g) Paid employees $1,248 million cash in the current period for salaries and wages. Of this $1,248 million, $104 million related to prior period employee service and $1,144 million related to current period employee service.