In an attempt to increase sales, Kingbird, Inc. began a special promotion on September 1,2021. A $0.75 coupon was printed on thelabel of 600,000 cans of soup. All of these cans were sold that day for $2.25 each to a large chain of grocery stores on account.Kingbird expected that 20% of the coupons would be redeemed. By the end of December 2021, Kingbird had redeemed 48,000coupons. Kingbird has a December 31 year-end and a periodic inventory system.Prepare the journal entry to record the sales and transactions related to the coupon promotion. Ignore sales taxes. (Credit occounttitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry“ for theaccount titles and enter O for the amounts.)Date Account Titles and ExplanationDebitCreditSept. 1eTextbook and MediaList of AccountsPrepare a summary transaction dated December 31, 2021, for the coupons redeemed. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts.)Date Account Tritles and ExplanationDebitCreditDec 31

The journal entries are prepared to keep the record of day to day transactions of the business.

In an attempt to increase sales, Kingbird, Inc. began a special promotion on September 1, 2021. A $0.75 coupon was printed on the label of 600,000 cans of soup. All of these cans were sold that day for $2.25 each to a large chain of grocery stores on account. Kingbird expected that 20% of the coupons would be redeemed. By the end of December 2021, Kingbird had redeemed 48,000 Coupons. Kingbird has a December 31 year-end and a periodic inventory system. Prepare the journal entry to record the sales and transactions related to the coupon promotiòn. Ignore sales taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is requíred, select "No Entry" for the account titles and enter O for the amounts,) Date Account Titles and Explanation Debit Credit Sept. 1 eTextbook and Media List of Accounts Prepare a summary transaction dated December 31, 2021.for the coupons redeemed. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit

In an attempt to increase sales, Kingbird, Inc. began a special promotion on September 1, 2021. A $0.75 coupon was printed on the label of 600,000 cans of soup. All of these cans were sold that day for $2.25 each to a large chain of grocery stores on account. Kingbird expected that 20% of the coupons would be redeemed. By the end of December 2021, Kingbird had redeemed 48,000 Coupons. Kingbird has a December 31 year-end and a periodic inventory system. Prepare the journal entry to record the sales and transactions related to the coupon promotiòn. Ignore sales taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is requíred, select "No Entry" for the account titles and enter O for the amounts,) Date Account Titles and Explanation Debit Credit Sept. 1 eTextbook and Media List of Accounts Prepare a summary transaction dated December 31, 2021.for the coupons redeemed. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Husserl Company included a coupon in each box of its cereal. For every 10 coupons returned by a customer, Husserl offered a silver spoon. Each spoon costs Husserl 75 cents. Husserl purchased 50,000 spoons as premium inventory. During the first year (2021) of the offer, Husserl sold 500,000 boxes of cereal at $5 each. The company estimated that 80% of the coupons would be redeemed. Husserl distributed 28,000 spoons during 2021. A) Prepare journal entries for 2021 B) Compute the estimated liability Husserl should show on its year-end balance for unredeemed coupons
On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the gross method to account for sales discounts. In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022? By how much?
Stellar Company offers a set of building blocks to customers who send in 3 UPC codes from Stellar cereal, along with 60¢. The block sets cost Stellar $0.90 each to purchase and 60¢ each to mail to customers. During 2025, Stellar sold 1,344,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 134,400 UPC codes were redeemed. Prepare Stellar'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.) Account Titles and Explanation Debit
Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2021, the company redeemed 10,200 points and sold additional product of $127,500, so it recorded $137,700 of revenue. The aggregate stand-alone selling price of the purchased products is $137,700. Seventy percent of sales were cash sales, and the remainder were credit sales. Required: 1. & 2. Prepare Supply Club's journal entry to record July and…
s
Sheridan Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 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): Coffee mugs purchased Candy bars sold Wrappers redeemed 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 2020 2021 710,000 800,000 5,700,000 6,980,000 2,800,000 4.160,000 2,000,000 2,700,000
Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $649,600 (cost of $550,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,600. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Sage for the full sales price. (a) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Sage Company on January 2, 2020, and the payment on January 28, 2020. Assume that Sage Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
Oriole Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from Oriole Frosted Flakes boxes and $2. The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 795000 boxes of Frosted Flakes and customers redeemed 356000 boxtops receiving 89000 bowls. If the bowls cost Oriole Company $4 each, how much liability for outstanding premiums should be recorded at the end of 2021?
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…
Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers earn one loyalty point for each dollar of goods purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 11,400 points and sold additional product of $142,500, so it recorded of revenue of $153,900. The aggregate stand-alone selling price of the purchased products is $153,900. Seventy percent of sales were cash sales, and the remainder were credit sales.…
Novak Company offers a set of building blocks to customers who send in 3 UPC codes from Novak cereal, along with 60¢. The block sets cost Novak $1.00 each to purchase and 50¢ each to mail to customers. During 2020, Novak sold 1,356,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 135,600 UPC codes were redeemed. Prepare Novak's December 31, 2020, 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.) Account Titles and Explanation Debit Credit
Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The loyalty points will not expire. Customers can redeem these points and are eligible to receive a box of cookies if they redeem 100 points. Brandin Grocers purchase these cookie boxes from the baker @ $3 a box. Because the offer is so popular, 98 per cent of the customers redeem their loyalty points to get the box of cookies.In the month of December 20x1, the total sales recorded in the Store were $ 442,000. You are required to calculate the liability amount and provide the necessary entries.