Prepare the journal entries that should be recorded in 2021 relative to the premium plan. (If no entry is required, select "No Entry" for theaccount titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.Round answers to O decimal places, e.g. 1,525.)Account Titles and Explanation(To record the premium inventory.)(To record the sales.)(To record the expense associated with the sale.)(To record the premium liability.)Debit|||||CreditIN TO DO To stimulate the sales of its Alladin breakfast cereal, Sandhill Company places 1 coupon in each box. 5 coupons are redeemable for apremium consisting of a children's hand puppet. In 2021, the company purchases 46,100 puppets at $1.65 each andsells 440,000 boxes of Alladin at $3.90 a box. From its experience with other similar premium offers, the company estimates that 40%of the coupons issued will be mailed back for redemption. During 2021, 121,000 coupons are presented for redemption.Prepare the journal entries that should be recorded in 2021 relative to the premium plan. (If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.Round answers to O decimal places, e.g. 1,525.)

A company's financial transactions are documented in journal entries, which are then utilised to…

Answered: To stimulate the sales of its Alladin…

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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Assume Costco wants to compete with large manufacturers of golf bags. Costco begins selling a new model of golf bag in its stores for $150. The bag comes with a coupon that customers may mail in to receive a free box of one dozen Kirkland (Costco's brand) golf balls. Each dozen golf balls cost Costco $9.50 to produce and $1.50 to mail to the customer. Kirkland estimates that 40% of the customers who buy a golf bag will mail in the coupon for the free golf balls. During the first quarter of 2020 Costco sold 12,000 golf bags. During that time, 1,000 customers mailed in their coupons and Costco sent them their golf balls. What is the rebate expense and liability, respectively, shown on Costco's financial statements at the end of the first quarter of 2020?
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 105600
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.
Mammoth Publishing, Inc. owns a weekly magazine called “Nova Health,” and sells annual subscriptions for $96. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called “Fishing & Camping,” which has a list price of $84 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed.Required:(a) How many performance obligations are in a single subscription contract?(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. of performance obligations: 2 Journal entry worksheet Note: Enter debits before credits. Transaction General Journal Debit Credit 1
choose the correct answer (make sure the answer is correct 100%) Fancy Fish Company offers a cash rebate of $0.25 on each $12 package of fish food sold during 2022. Historically, 10% of customers mail in the rebate form. During 2022, 5,000,000 packages are sold, and 150,000 $0.25 rebates are mailed to customers. What is the rebate expense and liability, respectively, reported in the company's 2022 financial statements? a. $37,500; $87,500 b. $125,000; $87,500 c. $125,000; $37,500 d. $125,000; $125,000
You sell $5 million dollars' worth of delivery trucks to Walmart on account and offer them a 2% discount if they pay within 15 days, with the invoice due after 45 days (2/15, n/45). Unfortunately, Walmart returns all of the trucks after one week because they discover that the model you sold them is not approved for use in California. Which of the following is part of the correct journal entry to make at the time that Walmart returns the trucks? DEBIT to Sales Returns of $5 million CREDIT to Sales Discount of $100,000 CREDIT to Accounts Receivable of $4.9 million CREDIT to Sales Revenue of $5 million
DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X1. Every time that a customer buys a cup of this type of coffee for $2.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X2. In December 20X1, the company sold 2,800 cups of dark roast coffee. Management expects customers will redeem 90% of the coupons based on many promotions like this that the company has had in the past. In the blank box below, please provide the amount asked for (when entering amounts please do not use commas, negative signs or dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1.
Cullumber Company offers a set of building blocks to customers who send in 3 UPC codes from Cullumber cereal, along with 50¢. The block sets cost Cullumber $1.30 each to purchase and 70¢ each to mail to customers. During 2025, Cullumber sold 1,536,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 153,600 UPC codes were redeemed. Prepare Cullumber'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 Premium Expense Premium Liability Debit 307,200 Credit 307,200
= p.pptm Pina Company offers a set of building blocks to customers who send in 3 UPC codes from Pina cereal, along with 50¢. The block sets cost Pina $1.30 each to purchase and 70¢ each to mail to customers. During 2020, Pina sold 876,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 87,600 UPC codes were redeemed. Prepare Pina'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.) here to search Account Titles and Explanation Premium Expense Premium Liability eTextbook and Media List of Accounts Save for Later ACC341-2022-Ho...xlsx ^ R G 18 6 B music 2.jpeg H N U J 4 8 I M ( 9 K Debit O Alt ) O L KER P P Attempts: 0 of 3 used Submit Answer : Home 3 Credit PrtSc { [ End + / 11 Ctrl Rain off and on Insert 1 PgUp 4 ^4x A Delete Backspace 7 Enter Shift
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.
Account Titles and Explanation Debit Credit (To record the pemium inventory) (To record the sales) (To record the expense associated with the sale) (To record the premium liability)

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