1. Marie Company sells gift certificates redeemable only when merchandise is purchased. These
gift certificates have an expiration date of two years after issuance date. Upon redemption
or expiration, Marie recognizes the unearned revenue as realized. Information for 2007 as
follows:
Gift certificate payable 12/31/2006 520,000
Gift certificate payable 12/31/2007 680,000
Gift certificate redeemed 1,560,000
Expired gift certificates 80,000
Cost of goods sold 80%
How much Gift certificates sold during the year?
a. 1,800,000 c.. 1,640 ,000
b. 1,500,000 d. 1,760,000
2. Zee Company provided the following informations concerning its defined benefit plan in its
memorandum records on January 1, 2007.
Fair Value of plant assets 5,100,000
Unamortized past service cost 210,000
Unrecognized Actuarial Loss 610,000
Projected Benefit Obligation (4,500,000)
Prepaid/Accrued benefit cost 1,410,000
During the current year, the entity determined that its Current service cost was 600,000 and the
