Problem I: Cobb Department Store

Unearned revenue, January 1

Add: Gift certificate sold
Total
Less: Gift certificates redeemed 1,950,000
Gifts certificates expected not to be redeemed 100,000
Unearned revenue- December 31

Problem II: Regal Department Store

Unearned revenue, January 1

Add: 2019 sales
Total
Less: 2019 redemptions of prior year sales 250,000
2019 redemptions of current year sales 1,750,000
Unearned service contract revenue- December 31

Problem III: Diversified Company

Deposits collected on containers shipped

Add: Containers held by customers
Total
Less: refunded 410,000
Forfeited 250,000
Liability for refundable deposit- December 31

Problem IV: Fell Company

Liability for refundable deposit, January 1 Php 600,000.00

Add: Cans of soda sold Php 980,000.00
Total Php 1,580,000.00
Less: Soda cans returned Php 860,000.00
Current liability for deposit, December 31 Php 720,000.00

Problem V: Greene Company

Unearned service contract revenue, January 1 Php 600,000.00
Add: Cash receipts from service contracts sold Php 980,000.00
Total Php 1,580,000.00
Less: Service contract revenue recognized Php 860,000.00
Unearned service contract revenue- December 31 Php 720,000.00
 650,000
2,250,000
2,900,000

2,050,000
850,000

750,000
2,500,000
3,250,000

2,000,000
1,250,000

700,000
330,000
1,030,000

660,000
370,000