For Each Independent Situation

question 67

Essay

For each independent situation:
1. Langford Airport Parking Ltd. awards customers 250 reward miles per stay,in a well-known airline mileage program. Langford pays the airline $0.06 for each mile. Langford,which is not an agent for the airline,estimates that the fair value of the miles is the same as the price paid-$0.06. Parking revenues on May 24,2017 were $52,000. Langford awarded 40,000 airline points to its customers.
2. On October 15,2013,Hamilton Windows and Sash properly recorded the issue of a $12,000 7% note due April 15,2014. Hamilton is preparing its financial statements for the year ended December 31,2013. Hamilton does not make adjusting entries during the year.
Requirement:
For each of the situations described above,prepare the required journal entry for the underlined entity. If a journal entry is not required,explain why.

---

Definitions:

IQ and Achievement Tests

Standardized tests designed to measure intellectual potential (IQ) and academic skills or knowledge in specific areas (achievement).

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct solution to a problem.

Divergent Thinking

An intellectual strategy or procedure aimed at creating original concepts by considering a wide range of solutions.

Supply and Demand

The fundamental economic concept that describes the relationship between the availability of goods (supply) and the desire for them (demand), influencing price and availability.