[The following information applies to the questions displayed below.] Apple Inc.

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[The following information applies to the questions displayed below.]

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 $20.6 million in iTunes gift cards in December, and customers redeem $13.6 million of the gift cards.

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.)

What is the ending balance in the unearned revenue account? (Enter your answer in dollars, not in millions.)

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 $20.6 million in iTunes gift cards in December, and customers redeem $13.6 million of the gift cards.

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.)

What is the ending balance in the unearned revenue account? (Enter your answer in dollars, not in millions.)

Explanation / Answer

(Amt in Millions) Journal Entry Date Particulars Dr. Amt Cr. Amt 1 Cash                                                           Dr.         20.60    To Gift Card Liability         20.60 (Sale of Gift card in Dec) 2 Gift Card Liability                                Dr.         13.60    To Revenue         13.60 (Gift cards redeem in Dec) Answer 3. Ending Balance in Unearned Revenue Account = 20.60 -13.60 = 7 Million

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