e Estimating amounts d. All of the above (www.regmovies.com), Regal Entertainmen
ID: 2400006 • Letter: E
Question
e Estimating amounts d. All of the above (www.regmovies.com), Regal Entertainment Group "operates the of it geographically diverse theatre circuit in the United States, consisting osst and in 576 theatres in 42 states." Common transaction system include selling tickets, paying employees, purchasing snack f new films, and declaring dividends on its capital stock. Regal's stock t symbol "RGC." 3. Reading review problem. According to the investor relations section euit in the United States, consisting of 7 s in Regal's accounting inf a. How should Regal code its chart of accounts to facilitate financial reporting? numbers for cash, capital stock, and advertising expense for the following eate a Regal O'Fallon Stadium 14 (O'Fallon, Missouri), Regal Windward Stadiu theat Hawai), and Regal Goldstream Stadium 16 (Fairbanks, Alaska). b. Suggest three source documents that Regal would use to complete the ste ing cycle. c. What journal entries would Regal make to record the transactions indicated d. What roles would human judgment and information technology play in Regal's transacin processing activities? 4. Making choices and exercising judgment. a. Which of the following would be recordable transactions in an accounting information tem? For each item that would not be a recordable transaction, explain why not. i. Purchasing land with a down payment and a note payable. ii. Verifying an increase in the market value of land.Explanation / Answer
Recordable Transaction: For a transaction to be recordable it must possess some basic characters:
1 It should have financial character ie. Money value must be involved for a transaction to be recorded.
2 Transaction involved should be separate from its owners and related to business entity.
3 Transaction should have effect of two fold ie. There must be something foregone for anything received.
4 Business transaction must be supported by some basic documents.
i Purchasing land with a down payment and a note payable is a recordable transaction since it have all the four characters mentioned above like, its related to business entity, have monetary value, two fold effect and supported basic docuents.
ii Verifying an increase in the market value of land is not a recordable transaction, since it doesn’t have monetary value and two fold effect.
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