Compute Premium Liability in 2019.
Q: 1. On January 1, 2024, Kent Co. introduced a premium program to stimulate sales. Kent includes one…
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Q: During 2021, Truffle Company sold 500,000 boxes of hotcakes under a new sales promotional program.…
A: The unredeemed coupon is treated as a liability because the company either has to provide goods or…
Q: Vera., a dealer of household appliances, sells washing machines at an average price of P8,100. The…
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Q: Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers…
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Q: Jewellery Limited manufactures and sells different kinds of handmade fine jewellery. The company…
A: As per matching principle, warranty expenses need to be recorded in the period of sale. So warranty…
Q: Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: The Western Canada Luggage Company its customers a gift set if the customer purchases 2 suitcases.…
A: A journal entry is a type of accounting entry that is being used to represent a financial…
Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each…
A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000
Q: Bezamon Shoes Shop has a customer loyalty program in which it issues points to customers for every…
A: The Sales for two years 2020 and 2021 are given Required 1. What is the stand alone value of the…
Q: Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers…
A: Solution:-1 Preparation of the journal entries in year of 2020 related to the premium plan of the…
Q: Concord Company offers a set of building blocks to customers who send in 3 UPC codes from Concord…
A: The objective of the question is to prepare an adjusting entry for Concord's company for the year…
Q: Flint Corporation sells DVD players. The corporation also offers its customers a 4-year warranty…
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Q: Novak Company offers a set of building blocks to customers who send in 3 UPC codes from Novak…
A: The objective of the question is to prepare the adjusting entry for Novak's company on December 31,…
Q: .Show all entries are required concerning warranties for 2020 and the computations that justify the…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: Curt Rugs is holding a 2-week carpet sale at Jacob's Club, a local warehouse store. Curt Rugs…
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Q: Expense approach. Required: Prepare the journal entries required for 2020 using the Expense…
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Q: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the…
A: Here in January prepaid cards sold having value = $4000
Q: Yummy Rice Cereal started a program at the beginning of 2024 in which it would provide an all-start…
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Q: Prepare Flint’s December 31, 2017, adjusting entry
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Q: presented by customers together with P10.00. Each mug costs P90 and in adition, it costs P20 to mail…
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Q: The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6)…
A: Journal is known as the first book of entry or the original book of entry Given in the question:…
Q: Carla Corporation sells DVD players. The corporation also offers its customers a 4-year warranty…
A: Warranty revenue recognized = Unearned warranty revenue / Contract term
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
Q: Higgins Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Dairy, Inc. offered an ice cream scoop in exchange for 8 labels of ice cream and $3.00. The ice…
A: Premium expenses are those expenses which company incurs when they provide the sales with the…
Q: Husserl Company included a coupon in each box of its cereal. For every 10 coupons returned by a…
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Q: Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications…
A: As per revenue recognition concept, a revenue has to be recognized by a entity when it is earned and…
Q: In 2019, Lee Electronics, a franchise of electronics stores located in small towns throughout the…
A: The details given in the question Units sold - 320 price per unit - $ 830 Repair cost - 2.5%
Q: Stellar Company offers a set of building blocks to customers who send in 3 UPC codes from Stellar…
A: For real accounts ( Such as Cash) Debit what comes in and Credit what goes outFor Personal Accounts…
Q: ROSE Corporation has a premiums payable balance of P242,000 on December 31, 2019 for a promotional
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Q: During 2020, ABC Company sold 500,000 boxes of brownies mix under a new sales promotional program.…
A: Net premium expense = Cost of baking pan + Handling and Shipping - Remittance from customer = 50 + 5…
Q: Indicate the account names, amounts, and classifications of the items related to the premium plan…
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Q: Wally Co. began selling merchandise on November 1, 2022. The company offers a 50-day warranty for…
A: A balance sheet is a financial statement that illustrates a company's assets, liabilities, and…
Q: Oriole Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops…
A: Box tops yet to be received=Total boxes sold×60%-Redeemed by customers=795,000×60%-356,000=121,000
Cyma Cola Company sells boxes of Cola for $10 per box. In addition, Cyma Cola offers its customers a drinking mug in exchange for $1 and 10 Cola box tops. The cost of drinking mug is $3, and the company estimates that customers will redeem 60 percent of the box tops. The premium offer began in June 2019. During 2019 Cyma Cola Company purchased 20,000 Drinking Mugs at $2 for each, and sold 300,000 boxes of Cola for $10 per box, and redeemed 60,000 box tops. Compute Premium Liability in 2019.
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- Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It sold out 25,000 food blenders at an average price of $130. Moon provides a 2-year warranty for each blender sold and estimates 9% of blenders will be returned for warranty with an estimated cost of $36 each. By the end of 2019, Moon has spent $44,000 servicing the warranty repairs. All the above transactions have been settled in cash. During 2019, Moon has 50 employees who work 5-day per week and get paid each other Friday. Salaries of $324,000 and payroll expense of $37,000 have been paid until December 22. Since the business grows quickly, Moon needs cash to expand. By the end of 2018, the Board of Directors authorized the management to issue 10-year bonds with a par value of $3,000,000, annual contract interest rate of 8% and semi-annual interest payments. Moon chose to use the straight-line method to amortize discount or premium on its bonds. On January 1, 2019, management issued…Pine Company offers a coffee mug as a premium for every ten P2.50 candy bar wrappers presented by customers together with P10.00. The purchase price of each mug to the company is P8.00; in addition, it costs P5.00 to mail each mug. The results of the premium plan for the years 2020 and 2021 are as follows (assume all purchases and sales are for cash): 2020 2021 Coffee mugs purchased 480,000 Candy bars sold 3,750,000 4,500,000 Wrappers redeemed 2,800,000 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 What is the amount of premium liability in the December 31, 2021 balance sheet?Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9,000 units, it will grant arebate of 3%. If it sells up to 21.100 units, it will grant a rebate of 5%. If it sells up to 32,200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9,900 units to Riverbed at a sales price of $99,000. Cullumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Cullumber report for the sale of the 9,900 units in the first quarter of the year. Reverue eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Arawer Savefor Later
- Pharoah sells 100 nonrefundable $50 gift cards for 3D printer paper on February 28, 2020. The paper has a standalone selling price of $50 (cost $36). The gift cards expiration date is June 30, 2020. Pharoah estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows. Redemption Total March 31 30 % April 30 75 June 30 90ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on January 11, 2020, what is the actual payments he needs to payMoon Co. sells food blenders. During 2022, Moon made 37,000 blenders at an average cost of $80. It sold out 25,000 food blenders at an average price of $130. Moon provides a 2-year warranty for each blender sold and estimates that 9% of blenders will be returned for warranty with an estimated cost of $36 each. By the end of 2022, Moon has spent $44,000 servicing the warranty repairs. All the above transactions have been settled in cash. During 2022, Moon has 50 employees who work 5-day per week and get paid each other Friday. By December 22, 2022, Moon has paid salaries of $324,000 and payroll tax expenses of $37,000 for the year.Since the business grows quickly, Moon needs cash to expand. By the end of 2021, the Board of Directors authorized the management to issue 10-year bonds with a par value of $3,000,000, an annual contract interest rate of 8%, and semi-annual interest payments. Moon chose to use the straight-line method to amortize discounts or premiums on its bonds. On…
- Elegance Esthetics Wholesalers Corporation sells various esthetics treatment tools, esthetic and spa supplies. In 2020, Elegance Esthetics signed a two-year contract with Saskatoon College to supply it with 100 esthetic tool and product kits for students in the college's esthetics program for each academic semester. The value of the contract is $231,600 based on four academic semesters over the two-year period. The kits are sold for $579 each. The cost of the kits is $472 each. The college can return any unsold kits to the company and Elegance estimates a return rate of 3%. Because the kits involve esthetic supplies and could potentially be contaminated, returned kits need to be scrapped and cannot be resold. Elegance shipped 100 kits for the September 2020 semester, 100 kits in January 2021 semester and another 100 kits in September 2021 semester. The kits are invoiced as soon as they are shipped (at the beginning of each semester) and payment is required within 30 days. The college…AshvinPhoenix Company, places a coupon in each box of its product. Customers may send in ten coupons and P3.00, and the company will send them a romantic pillow. Sufficient pillows were purchased at P5.40 a piece. During 2019, 1,260,000 boxes were sold. It was estimated that a total of 5% of the coupons will be redeemed. In 2019, 18,000 coupons were redeemed. How much is the premium expense for the year 2019?
- Waterway Company offers a set of building blocks to customers who send in 3 UPC codes from Waterway cereal, along with 50¢. The block sets cost Waterway $1.00 each to purchase and 60¢ each to mail to customers. During 2025, Waterway sold 960,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 96,000 UPC codes were redeemed. Prepare Waterway's December 31, 2025, adjusting entry. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Credit Account Titles and Explanation Premium Expense Premium Liability Debit 105600 105600Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1, 2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December 31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak. (b) Your Answer Correct Answer Your answer is correct. Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by Novak. (Round answer to 2 decimal places,…AMCO Limited sells video recorders for cash and on instalment sales. Details of video recorders sold on instalment sales: Cost price R750 Cash selling price R1 000 Deposit, 20% Balance payable in 36 instalments of R35 each commencing 1 month after sale. The company utilizes an interest suspense account and earns interest on the sum of the digits method. On 1 March 2019, the company sold 5 video recorders on instalment sales. REQUIRED Journal entries (including cash transactions) to record all the transactions relating to those 5 video recorders for the year ended 31 December 2019. (All calculations to the nearest Rand). 中
