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For Each Independent Situation

Question 93

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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 15,2017,Hamilton Windows and Sash properly recorded the issue of a $12,000,7% note due April 15,2018.Hamilton is preparing its financial statements for the year ended December 31,2018.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.

Correct Answer:

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1.This is a third-party reward...

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