Love company included one coupon in each package sold. A premium is offered to the costumer whosend in 10 coupons.20212022Number of package soldNumber of premiums purchased at P40 eachNumber of premium distributedNumber of premiums to be distributed next period500,000800,00030,00020,0005,00060,00050,0003,0001. What amount should be reported as premium expense for 2021?2. What amount should be reported as estimated premium liability on December 31, 2021?3. What amount should be reported as premium expense in 2022?4. What amount should be reported as estimated premium liability on December 31, 2022?

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Love company included one coupon in each package sold. A premium is offered to the costumer who send in 10 coupons. 2021 2022 Number of package sold Number of premiums purchased at P40 each Number of premium distributed Number of premiums to be distributed next period 500,000 30,000 20,000 800,000 60,000 50,000 3,000 5,000 1. What amount should be reported as premium expense for 2021? 2. What amount should be reported as estimated premium liability on December 31, 2021? 3. What amount should be reported as premium expense in 2022? 4. What amount should be reported as estimated premium liability on December 31, 2022?

Love company included one coupon in each package sold. A premium is offered to the costumer who send in 10 coupons. 2021 2022 Number of package sold Number of premiums purchased at P40 each Number of premium distributed Number of premiums to be distributed next period 500,000 30,000 20,000 800,000 60,000 50,000 3,000 5,000 1. What amount should be reported as premium expense for 2021? 2. What amount should be reported as estimated premium liability on December 31, 2021? 3. What amount should be reported as premium expense in 2022? 4. What amount should be reported as estimated premium liability on December 31, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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