Account grill?
The Ritz Manor is a popular seaside resort. A double room costs $220 for one dark. In charge to reserve a room, guests must wage one night’s stay within finance. On respectively floor of the hotel, Vendalite Company operate vending machines beside spirit bar, juice, and other snacks for guests. Vendalite stocks the machines and collects revenue every week. Total average weekly revenue from these machines is $720. The Ritz Manor is entitled to 30% of the revenue from the machines. Vendalite sends a check to the Ritz Manor once at the end of respectively quarter for the resort’s share of the revenue.
Based on this information, what type of adjust entries does the Ritz Manor hold?
How are the amounts of these adjustment determined?
Which accounts are artificial?
Answers:
Guests must repay one night’s stay contained by advance
On reception the mortgage:
Dr Cash 220
Cr Advance room rental revenue 220 (liab a/c)
When the customer have stayed near and checked out:
Dr Advance roon rental revenue 220
Cr Room rental revenue 220 (revenue a/c)
Assuming a/cs are updated by Ritz Manor once a week,
Dr A/cs receivable (Vendalite Co) 216 ($720 x 30%)
Cr Vending contrivance revenue 216
At the stop of the quarter, the a/cs receivable a/c (Vendalite) would enjoy accumulate 13 weeks x 216 or 2808. When Ritz Manor receive the cheque from Vendalite, it'll know the exact amt, so an adjust entry will be critical to recognise the overs or unders, for e.g. if the cheque is for 2850, the entry is
Dr Cash 2850
Cr A/cs receivable (Vendalite) 2808
Cr Vending appliance revenue 42
This is cos the $720 per week is one and only an estimated amount, hence 30% of this ($216) is also an estimated amt. But once a quarter upon reception the cheque from Vendalite, Ritz will know the exact amt.
are you trying to acquire us to do your homework for you?? ;-)
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Based on this information, what type of adjust entries does the Ritz Manor hold?
How are the amounts of these adjustment determined?
Which accounts are artificial?
Answers:
Guests must repay one night’s stay contained by advance
On reception the mortgage:
Dr Cash 220
Cr Advance room rental revenue 220 (liab a/c)
When the customer have stayed near and checked out:
Dr Advance roon rental revenue 220
Cr Room rental revenue 220 (revenue a/c)
Assuming a/cs are updated by Ritz Manor once a week,
Dr A/cs receivable (Vendalite Co) 216 ($720 x 30%)
Cr Vending contrivance revenue 216
At the stop of the quarter, the a/cs receivable a/c (Vendalite) would enjoy accumulate 13 weeks x 216 or 2808. When Ritz Manor receive the cheque from Vendalite, it'll know the exact amt, so an adjust entry will be critical to recognise the overs or unders, for e.g. if the cheque is for 2850, the entry is
Dr Cash 2850
Cr A/cs receivable (Vendalite) 2808
Cr Vending appliance revenue 42
This is cos the $720 per week is one and only an estimated amount, hence 30% of this ($216) is also an estimated amt. But once a quarter upon reception the cheque from Vendalite, Ritz will know the exact amt.
are you trying to acquire us to do your homework for you?? ;-)