Accounting Homework Question?
Question:
If so I would really appreciate it, thank you.
The Ritz Manor is a popular seaside resort. A
double room costs $220 for one night. In order to reserve a room, guests must pay one
night's stay in advance. On each floor of the hotel, Vendalite Company operates vending
machines with energy bars, juices, 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 each quarter for the resort’s
share of the revenue.
o Based on this information, what type of adjusting entries does the Ritz Manor have?
o How are the amounts of these adjustments determined?
o Which accounts are affected?
Answer:
For rents:
Accrued unearned revenues from those who haven't yet checked in but paid in advance.
Accrued revenues earned but not yet paid from those who have not yet checked out.
From the vending machines:
Accrued revenues on vending sales not yet received.
The rest you'll have to figure out on your own.
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