No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium ( kitchen utensil). In 2025, No Doubt Company purchased 8,800 premiums at 80 cents each and sold 110,000 boxes of soap powder a $3.30 per box; 44,000 coupons were presented for redemption in 2025. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2025. (If no entry is required,

No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium ( kitchen utensil). In 2025, No Doubt Company purchased 8,800 premiums at 80 cents each and sold 110,000 boxes of soap powder a $3.30 per box; 44,000 coupons were presented for redemption in 2025. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2025. (If no entry is required,

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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Marigold Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Marigold Company purchased 9,100 premiums at 75 cents each and sold 101,000 boxes of soap powder at $ 3.60 per box; 40,800 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
8. RHINO Corp. sells novelty items and grants its customers one reward point for each P500 sale. Each point is redeemable in the form of peso discount. The customer can earn 1 point for every P500 purchase from RHINO. During 2021, RHINO made P5,000,000 on which 10,000 were awarded. The fair value price for the points is P125. RHINO expects that only 50% of the points will be redeemed. During 2021, 4,000 points were redeemed by the customers. On 2022, there are 200 points redeemed from customers of 2021 sales. What amount should be reported as unearned revenue on loyalty points from 2021 sales for 2022?
In December 2021, Belarmino Company began including one coupon in each package of candy that is sells and offering a toy in exchange of P5 and five coupons. The toys cost P8 each. Eventually, 60% of the coupons will be redeemed. During December, Belarmino Company sold 110,000 packages of candy and no coupons were redeemed. Belarmino Company should report an estimated liability for coupons of Group of answer choices 105,600 198,000 39,600 528,000
Sheffield Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Sheffield $5 each. Sheffield estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows: 2020 2021 Bags of dog food sold 520000 620000 Leashes purchased 19000 21000 Coupons redeemed 130000 130000 The premium liability at December 31, 2020 is O S73750. O $48750. O $63750. O $85750.
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On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box contains one coupon, which entitles the buyer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the buyer to receive a premium. Jhet Enterprises estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional info revealed that ₱10 per premium is incurred for storage and distribution. Required: Compute for the liability for the unredeemed coupons.
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Mammoth Publishing, Incorporated owns a weekly magazine called “Nova Health,” and sells annual subscriptions for $86. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 30% discount coupon on its other weekly magazine called “Fishing & Camping,” which has a list price of $70 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed.\\n\\nRequired:\\n(a) How many performance obligations are in a single subscription contract?\\n\\n(b) Prepare the journal entry to account for one new subscription of “Nova Health,” clearly identifying the revenue or deferred revenue associated with each performance obligation.
Vaughn Excavating Inc. is purchasing a bulldozer. The equipment has a price of $97,600. The manufacturer has offered a payment plan that would allow Vaughn to make 10 equal annual payments of $15.883.95, with the first payment due one year after the purchase. x Your answer is incorrect. How much total interest will Vaughn pay on this payment plan? (Round factor values to 5 decimal places, eg 1.25124 and final answer to 0 decimal places, eg. 458.5811 Total interest 501877 Your answer is partially correct. Vaughncould borrow $97,600 from its bank to finance the purchase at an annual rate of 9% Click here to view factor tables Should Vaughn borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round factor values to decimal places, s 1.25124 and final answer to O decimal places, eg 7%) 15.00 % Manufacturer's rate from the Da
Problem 1. Hobbit Company sold 700,000 boxes of chocolate chip cookies under a new sales promotion program. Each box contains one coupon, which if submitted with P40, entitles the customer to water jug. Hobbit pays P60 per jug and P5 for handling and shipping. Hobbit estimates that 70% of the coupons will be redeemed even though only 250,000 coupons had been processed in 2021. How much should Hobbit report as liability for unredeemed coupons at December 31, 2021?
Yummy Rice Cereal started a program at the beginning of 2024 in which it would provide an all-star bowl in exchange for four proof-of-purchase box tops. Yummy Rice estimates that 25% of box tops will be redeemed. The bowls cost Yummy Rice $1.10 each. In 2024, 5,240,000 boxes of cereal were sold. By year- end 906,000 box tops had been redeemed. Required: Calculate the premium expense that Yummy Rice should recognize for the year ended December 31, 2024.