Compute Premium Liability in 2019.
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Q: On the back of its cereal boxes, Tiger Cereal Company offers a premium to its customers. The…
A: Step 1 Journal is the part of book keeping.
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Q: Swifty Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
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Q: Beginning the year 2021, the Chicken Wings Manufacturing Company (CWMC) began marketing its iphone…
A: Unearned revenue for unredeemed premiums is calculated by multiplying the sales revenue per premium…
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A: Given information is: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone…
Q: No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are…
A:
Q: During 2020, STU Company sold 500,000 boxes of brownies mix under a new sales promotional program.…
A: Net premium expense = Cost of baking pan + Handling and Shipping - Remittance from customer = 50 + 5…
Q: At the beginning of the current year, Clan Company offers the customers a pottery bowl if they send…
A: Liability represents the obligation that has to be paid by the company by sacrificing the assets of…
Q: Hard Company placed orders to DIFFICULT for the year 2021 that will result to the following amount…
A: First Quarter Details: Tax rate = 32% Sales = P13,000,000 Rebate = 10% * 1,100,000 = P110,000 Cost…
Q: Huawey Company, a telco operator, entered into a contract with Badjyang on Feb. 1, 2019. In line…
A: It is pertinent to note that as per IFRS 15 if a contract consists of two or more goods and services…
Q: SUGA Company sold 485,000 boxes
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: ugust, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000.…
A: Net Income: Net income is the excess amount of revenue that arises after deducting all the expenses…
Q: MarkosLabs, Inc. sells tattoupées – tattooable toupées for balding men. In 2021, it sold 200…
A: In accordance with IFRS 15, a company recognizes revenue to represent the transfer of promised goods…
Q: On August, 2019, KBO consigned to UFO 10 laptops costing P15,000 each, paying freight charge of…
A: This question deals with the concept of consignment and consignee. In consignment business there are…
Q: On January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these…
A: In Consignment Accounting we prepare Consignment A/c which is like a…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: Sheridan Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers…
A: Cost of Mug $ 2.40 Cost of Mail $ 1.60 Total Cost $ 4.00 Less: Sale Price $ 2.00…
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A: Here in January prepaid cards sold having value = $4000
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Q: Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based…
A: Sales revenue = Total sales - Rebate = $110,000 - $110,000*2% = $110,000 - $2,200 = $107,800
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A: Solution : Total boxes sold 675000 Boxes that is estimated to be sent by customers (60% of…
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A: The question is based on the concept of Financial Accounting.
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A:
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Q: Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates…
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Q: Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…
A: Sometimes, customers are provided with offer of sending empty boxes to the company and in return…
Q: whereby a customer who purchases three boxes of chocolates at P200 per box in a single transaction…
A: A.4,000,000 B.7,20,000 3x +.75x =60,000 x = 16,000 So .75 x 16,000 = 12,000 ×200
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Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
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Q: Indicate how much income Ayayai should recognize in January, February, March, and April.
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Q: Pine Company offers a coffee mug as a premium for every ten P2.50 candy bar wrappers presented by…
A: Answer - Premium Liability - Premium Liabilities “refer to all future claim payments and related…
Q: Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following…
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A:
Q: How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the…
A: Sales revenue: Sales revenue is the income earned by the company by selling goods and services.…
Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…
A: SOLUTION- A sales discount is a reduction in the price of a product or service that is offered by…
Q: Sunland Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented…
A: A journal entry is made to record the financial transaction in the books of accounts A balance sheet…
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Q: On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of…
A: Consignment accounting refers to the accounting for goods sent to the consignee and other…
Cyma Cola Company sells boxes of Cola for $10 per box. In addition, Cyma Cola offers its customers a drinking mug in exchange for $1 and 10 Cola box tops. The cost of drinking mug is $3, and the company estimates that customers will redeem 60 percent of the box tops. The premium offer began in June 2019. During 2019 Cyma Cola Company purchased 20,000 Drinking Mugs at $2 for each, and sold 300,000 boxes of Cola for $10 per box, and redeemed 60,000 box tops. Compute Premium Liability in 2019.
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- Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates based on total sales to Pearl. If total sales to Pearl are 11,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 29,200 units, it will grant a rebate of 6%. In the first quarter of the year, Carla Vista sells 9,000 units to Pearl at a sales price of $90,000. Based on past experience, Carla Vista has sold over 40,000 units to Pearl, and these sales normally take place in the third quarter of the year.Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 10,500 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Splish sells 10,600 units to Blossom at a sales price of $106,000. Splish, based on past experience, has sold over 37,600 units to Blossom, and these sales normally take place in the third quarter of the year.What amount of revenue should Splish report for the sale of the 10,600 units in the first quarter of the year. Revenue $Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales price of $110,000. Manual, based on past experience, has sold over 40,000 units to Nolan, and these sales normally take place in the third quarter of the year. What amount of revenue should Manual report for the sale of the 11,000 units in the first quarter of the year?
- Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9,000 units, it will grant arebate of 3%. If it sells up to 21.100 units, it will grant a rebate of 5%. If it sells up to 32,200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9,900 units to Riverbed at a sales price of $99,000. Cullumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Cullumber report for the sale of the 9,900 units in the first quarter of the year. Reverue eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Arawer Savefor LaterOn the back of its cereal boxes, Tiger Cereal Company offers a premium to its customers. The premium, a toy truck, may be claimed by sending in $1 plus 10 coupons; one coupon is included in each box of cereal sold. Tiger estimates, based on past experience, that 60% of the coupons will be redeemed. During 2019, Tiger purchased 240,000 toy trucks at $1.25 each for the premium promotion and sold 5,000,000 boxes of cereal at $1.80 per box. In 2019, 2,200,000 coupons were redeemed. Required: 1. Prepare the journal entries related to the previous promotion (including sales) for 2019. 2. Show how the items related to the premium plan would be reported on the December 31, 2019, balance sheet.Kane Candy Company sells candy bars for $1 each. In addition, Kane offers its customers a coffee mug in exchange for $2 and 10 candy wrappers. A coffee mug costs Kane $2.40, and the company estimates that customers will redeem 60 percent of the candy wrappers. During 2020, Kane purchased 720,000 mugs, sold 5,600,000 candy bars, and redeemed 2,800,000 candy wrappers. Instructions: 1. Prepare the journal entry to record the purchase of the coffee mugs. 2. Prepare the entry to record the sale of the candy bars. 3. Prepare the entry to record the redemption of candy wrappers, the receipt of $2 per 10 wrappers, and the delivery of the coffee mugs. 4. Prepare the adjusting entry to record additional premium expense and the estimated premium liability at Dec. 31, 2020. L
- On October 1, 2018, Super Soup Corp. began offering customers a Super Soup Spoon in return for 20 soup can labels. This offer expires on March 31, 2019. The cost of each soup spoon is $1.50. Based on past experience, the company estimates that only 40% of the labels will be redeemed. During 2018, the company purchased 13,000 soup spoons and sold 600,000 cans of soup at $1.20 per can (the company uses the periodic inventory method). From these sales, 180,000 labels were returned for redemption in 2018. a. Prepare the journal entry to record the purchase of 12,000 soup spoons. b. Prepare the journal entry to record the sale of 600,000 cans of soup. c. Prepare the journal entry to estimate the premium expense for 2018. d. Prepare the journal entry to record the redemption of 180,000 labels. Answer:Kane Candy Company sells candy bars for $1 each. In addition, Kane offers its customers a coffee mug in exchange for $2 and 10 candy wrappers. A coffee mug costs Kane $2.40, and the company estimates that customers will redeem 60 percent of the candy wrappers. During 2020, Kane purchased 720,000 mugs, sold 5,600,000 candy bars, and redeemed 2,800,000 candy wrappers. Instructions: 1. Prepare the journal entry to record the purchase of the coffee mugs. 2. Prepare the entry to record the sale of the candy bars. 3. Prepare the entry to record the redemption of candy wrappers, the receipt of $2 per 10 wrappers, and the delivery of the coffee mugs. 4. Prepare the adjusting entry to record additional premium expense and the estimated premium liability at Dec. 31, 2020.Sandhill Company sells goods to Blossom Company during 2025. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 9,300 units, it will grant a rebate of 2%. If it sells up to 20,600 units, it will grant a rebate of 4%. If it sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Sandhill sells 10,100 units to Blossom at a sales price of $90,900. Sandhill, based on past experience, has sold over 39,000 units to Blossom, and these sales normally take place in the third quarter of the year. What amount of revenue should Sandhill report for the sale of the 10,100 units in the first quarter of the year? Revenue $
- Swifty Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Swifty Frosted Flakes boxes and $2. The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 1355000 boxes of Frosted Flakes and customers redeemed 660000 boxtops receiving 220000 bowls. If the bowls cost Swifty Company $4 each, how much liability for outstanding premiums should be recorded at the end of 2021? O $542000 O $278000 O $102000 O $204000Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based on total sales to Flint. If total sales to Flint are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Teal sells 11,800 units to Flint at a sales price of $129,800. Teal, based on past experience, has sold over 42,400 units to Flint, and these sales normally take place in the third quarter of the year.What amount of revenue should Teal report for the sale of the 11,800 units in the first quarter of the year. RevenuePalmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakesboxes and P2. The company estimates that 60% of the boxtops will be redeemed. In 2020, the company sold 675,000 boxesof Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company P6each, how much liability for outstanding premiums should be recorded at the end of 2020?a. P540,000 c. P150,000b. P100,000 d. P276,000