For Each Independent Situation

question 33

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, 2020 were $52,000. Langford awarded 40,000 airline points to its customers.
2. On October 15, 2020, Hamilton Windows and Sash properly recorded the issue of a $12,000, 7% note due April 15, 2021. Hamilton is preparing its financial statements for the year ended December 31, 2021. Hamilton does not make adjusting entries during the year.
Required:
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.

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Definitions:

Central Traits

Traits that have a disproportionate influence on the configuration of final impressions, in Asch’s configural model of impression formation.

Generous

Characterized by a readiness to give more of something, such as money or time, than is strictly necessary or expected.

Warm

Warmth is often described as a personality characteristic indicating friendliness, empathy, and kindness towards others.

Kurt Lewin

A psychologist known for his pioneering work in social, organizational, and applied psychology, including the development of field theory.