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buggs420 · Oct 18, 2007, 09:01 AM

Post your response to the following: 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?

kgtereska · Jun 12, 2008, 11:42 AM

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.

For the rest you will have to figure it out on your own.

kgtereska · Jun 12, 2008, 11:43 AM

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.

For the rest you will have to figure it out on your own