Miracle company premium warranty solution PROBLEMSProblem 2-1 (IAA)Miracle Company manufacturers a product that is packagedand sold. A plate is offered to customers sending in threewrappers accompanied by a remittance of P10.ofData with respect to the premium offer are summarized below.20202021SalesPurchase of premium, P50 per plateNumber of plates distributed as premiumsEstimated number of plates to bedistributed in subsequent periodDistribution cost P20 per plate3,600,000390,0005,0004,200,000580,0009,0002,0003,000Required:Prepare journal entries that would be made in 2020 and 2021to record sales, premium purchases and redemptions, andyear-end adjustments.Problem 2-2 (IAA)Cascade Company manufactures a special laundry soap.

Journal entry is a primary entry that records the financial transactions initially.

Miracle Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below.

Miracle Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below.

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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Question

Miracle company premium warranty solution

PROBLEMS
Problem 2-1 (IAA)
Miracle Company manufacturers a product that is packaged
and sold. A plate is offered to customers sending in three
wrappers accompanied by a remittance of P10.
of
Data with respect to the premium offer are summarized below.
2020
2021
Sales
Purchase of premium, P50 per plate
Number of plates distributed as premiums
Estimated number of plates to be
distributed in subsequent period
Distribution cost P20 per plate
3,600,000
390,000
5,000
4,200,000
580,000
9,000
2,000
3,000
Required:
Prepare journal entries that would be made in 2020 and 2021
to record sales, premium purchases and redemptions, and
year-end adjustments.
Problem 2-2 (IAA)
Cascade Company manufactures a special laundry soap.

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