Basil Company should reported unearned premium income at the end of December 31, 2022 of?
Q: O 0 o o CAPITAL STOCK AND ADDITIONAL PAID-IN CAPITAL Capital stock is stated at par value of the…
A: Capital stock is the common stock issued by the corporation. Every organization raise funds for its…
Q: Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent…
A: Loss in contribution of Hardware department = 2,271,000×19% = 431490
Q: rrower ask for in order to a est that is being charged on
A: Simple interest rate is the rate that does not have the effect of compounding. To calculate the…
Q: 1. For external reporting, the individual financial statements of the home office and the branch are…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: A Ltd purchased four motor vehicles for $50000 each on 1/1/2015. The company depreciates motor…
A: A deferred tax liability is a tax which is liable to be paid but not yet due to be paid in the…
Q: Thinker Corporation’s income statement for the year ended December 31, 2022, shows pretax income of…
A: Income taxes owing are an item in the financial statements and the current liabilities portion of…
Q: On Jan. 1, 2021, ABC Corporation entered into a P5,000,000 IRG 1-10, 9% contract with its bank.…
A: The cash to be received from a contract at any point in time is equal to the initial value of the…
Q: The following transactions occurred for the Microchip Company. 1. On October 1, 2024, Microchip lent…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: A company has the following data at the end of the current year: 200,000 207,000 $15,000 Number of…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: Using accrual basis, how much is the reportable gross income in 2021? A. 8,000,000 B. 9,000,000 C.…
A: Accrual basis of accounting is that basis under which all revenues earned during the period and all…
Q: On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The…
A: Depreciation is charged on asset due to wear and tear, obsolescence, new technology, etc.…
Q: A company insued 4%, 15year bonds with a par valut of 5300 000 that pay interest annually Thie…
A: Interest on bonds is payable on face value. And Interest rate is the coupon rate.
Q: 9 Explain how the effectiveness of general control affects the auditor's test of automated…
A:
Q: 8- Which among the following is a tool of management accounting? a. Risk analysis b. All the…
A: Management accounting refers to the managing of the operations of the business. It is basically…
Q: Please document all journal entries for each month, January through March. - $65,000 Insurance…
A: Journal entries are first step in accounting to record business event. It always consist two parts…
Q: Mateen Oil and Gas Company provides the following data: 2019 2020 2021 Unproved property acquisition…
A: Calculation of finding cost of BOE for 2020 = =G&G+Exploratory drillingExtensions &…
Q: Exercise 3 -7 1. Martin and Isidore form a partnership with investments of P 1,000,000 and P 500,000…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: In computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process…
A: Calculating manufacturing cost per equivalent unit: FIFO method: Only the current period cost is…
Q: Cost of Goods Sold $164,000 Income Tax Expense 17,470 Merchandise Sales (gross revenue) for Cash…
A: Formula for Calculating Gross profit: Gross Profit = Net sales revenue - Cost of goods sold
Q: 9.5 Irish Catering started in business on 1 January 2010, its financial year ending 31 December. The…
A: Depreciation is the amount which is to be reduced from value of assets to recognise the normal…
Q: V. Prepare the Trial Balance
A: Trial balance means the statement prepared from ledger account where all debit and credit balance…
Q: Urgently required answer to following: The following information related to stock investments of…
A: calculation of balance in the fair value adjustment account as of December 31, 2020 after…
Q: Problem-solving Admission by Purchase of Interest or Investment of Assets Angeles. Bondoc and Campos…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: X Corporation opted to deduct OSD. The following are the results of its operation: Net sales…
A: An OSD or Optional Standard Deduction is a standard deduction at the rate of 40% which taxpayers…
Q: The Conceptual Framework for Financial Reporting addresses fundamental issues including Group of…
A: Solution Concept Conceptual framework is the accounting framework that provides the basis for the…
Q: If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount…
A: Solution: Cash paid for bond interest = Bond interest expense - Increase in bond payable - Decrease…
Q: Merchandise is purchased for $6,000 on September 2 subject to terms of 2/10, n/30, FOB destination.…
A: Freight cost: Freight cost is the fee paid to a carrier company for transporting goods from their…
Q: Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and…
A: Solution: Amount of cash paid for insurance = Insurance expense for the year + Ending prepaid…
Q: Correcting the Trial Balance: Near the end of the year, Alpha received $2,000 cash in advance from a…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: The income tax payable of ABC Corporation for the taxable year 2023 is:
A: This question belongs to Phillipines so, the income tax provisions of Phillipines will apply. The…
Q: On January 1, 2021, Robin Cormpany received a grant of P1,500,000 from the government to subsidize…
A: Government Grant: Instead than acting as an incentive to carry out specified expenditures, a…
Q: A credit memo received from the branch is recorded by the home office as
A: Branch accounting is a system in which separate accounts are maintained for each operating unit of a…
Q: The data shown were obtained from the financial records of Italian Exports, Inc., for March:…
A: The direct expenses of manufacturing the goods supplied by a business are referred to as the cost of…
Q: A B C Initial investment…
A: Net present value is one of the methods of capital budgeting where projects net present value is…
Q: ssuming a 35% statutory tax rate applies to all years involved, which of the following situations…
A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…
Q: Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the…
A: Net present value is one of the investment appraisal techniques used by the management in making…
Q: The following business transactions of Mrs.Emma Blake, a sole trader.…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: The inventory data for an item for November are: Nov. 1 20 units at $19 Inventory Sold 4 10 units 10…
A: Introduction: The price of the goods sold by the wholesaler or retailer is referred to as the cost…
Q: On March 2, 2022, Gumamela Corporation issued 4,000 shares of 6% cumulative P100 par value…
A: One non- detachable share warrant for one share total mumber of shares warrant =4000 shares x 1…
Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't…
A: Revenue means the amount earned by selling the goods or services. Profit means the difference…
Q: Juan Company purchased four convenience store buildings on January 1, 2015 for a total of…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…
Q: Prepare the journal entry on the books of the partnership to record the withdrawal of Stine
A: Journal Entries a. Stin capital a/c Dr. 60000 Gregg capital a/c Dr. 8000 Baker capital a/c…
Q: Solen Corporation's break-even-point in sales is $850,000, and its variable expenses are 80% of…
A: Formula used : Sales value = Contribution margin / ( 100 - variable expenses % )
Q: View Policies Current Attempt in Progress During 2017, Teal Furniture Company purchases a carload of…
A: Gross profit is calculated by deducting the cost of goods sold from sales. It is a profit before…
Q: True or False: While everyone seems to accept the idea that attention must be paid to organizational…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: 1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of…
A: Present value means the actual amount is adjusted with the interest rate so as to get the present…
Q: How much should BC report as taxable gross income?
A: Gross income is the income which a company has earned by selling the products or services during the…
Q: Required information Reporting Amounts on the Four Basic Financial Statements and Evaluating…
A: A shareholder, sometimes known as a shareholder, is a person, company, or organization who holds at…
Q: 1. From the tollowing particulars taken trom the Cash Book of a health club, prepare a Receipts and…
A: The receipt and payments account summarizes an organization's cash payments and receipts over the…
Basil Company inaugurated a premiums promotional campaign at the beginning of 2021. Two stickers are included for every sachet of shampoo sold. These stickers will be used to redeem a hair brush. To claim one hair brush, a customer shall present 30 stickers. Each sachet of shampoo is sold at P15 while the hair brush had a cost of P5 each. The following is the summary of the promotional campaign for years 2021 and 2022:
|
2021 |
2022 |
Total sachet of shampoo sold |
300,000 |
562,500 |
Total stickers presented for redemption |
405,000 |
825,000 |
The company estimates that only 80% of the stickers will be presented for redemption. The hair brush can be sold separately at P10 if not use in premium promotional program. Basil Company should reported unearned premium income at the end of December 31, 2022 of?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- CoolShoes sells its elite tennis shoes to sports retailers throughout the country. When introducing its new RF17 shoes that sell for 125 per pair, the company includes a 15 rebate form. The rebate form can be used when the customer ultimately purchases the shoes. CoolShoes sells 100 pairs of shoes and estimates that 80% of the rebate forms will be returned by customers for a rebate. Determine the transaction price that CoolShoes should use when recognizing revenue from sale of one pair of the RF17 shoe.On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for 3 per bar. In addition, AwakcAllNight pays Campus Grocers a 900placement fee to ensure that its candy bars are always stocked prominently by the cash register. The 900 is paid at the end of each month based on the results of random inspections of Campus Grocers by AwakcAllNight to ensure that the terms of the contract are being followed. Required: 1. Determine the transaction price for Awake AllNights revenue contract. 2. Prepare AwakeAllNights journal entries to recognize sales revenue and pay Campus Grocers the placement fee.Beautiful Company started a new promotional program in 2021. For every 10 bottle caps returned to Beautiful, customers receive a basketball. The company estimates that only 60% of the bottles reaching the market will be redeemed. The basketball costs P100 and can be sold separately at P150. Additional information is as follows (see image below).1. How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the Total Revenue to be recognized in 2021?
- Palmer 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. P276,000Beginning the year 2021, the Chicken Wings Manufacturing Company (CWMC) began marketing its iphone XV (pronounced as X Five). Each XV sells for P50,000. To promote and expedite sales of this product, the management of AMC is offering one proof of purchase seal for a special slim transparent case to each customer for every unit of XV purchased. CWMC estimates that out of the units sold during 2021, only 60% of the proof of purchase seals will be redeemed. Sales of XV during 2021 totaled P40 million. For that year, 500 special slim transparent cases were purchased by the company at a total cost of P750,000. These 500 special slim transparent cases have a total sales value of P1,000,000. A total of 256 special slim transparent cases were distributed to customers during the year 2021.How much is the unearned revenue for unredeemed premiums reported in CWMC’s December 31, 2021 statement of financial position?Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2020, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation. Instructions a. Determine the transaction price for the product and the customer loyalty points. b. Prepare the journal entries to record the sale of the product and related points on July 2, 2020. c. At the end of the first reporting period (July 31, 2020), 10,000 loyalty points are…
- Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $1000. During that period, gift cards with a value of $250 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards isIn January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the sales include a right for the customer to return a shredder within 180 days of the sale date. Based on historical trends, the retailer uses the expected value method and estimates a 40% probability that 8 paper shredders will be returned, a 45% probability that 9 paper shredders will be returned, and a 15% probability that 12 paper shredders will be returned. The retailer also concludes it is highly probable that there will not be a significant reversal of revenue recognized based on this return estimate. Thus, the agreement is a valid contract. Assume no actual returns in January 2020. Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund liability balance on January 31, 2020. Round expected returns to the nearest whole unit in your calculations.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 $
- JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow,…RPS co-op introduced a loyalty program in 2020. every customer who signed up would receive 3% of their total purchases as a cheque, each February for the previuos year, that could br used in sotre on any merchandise eithin the next nine months. customers could look online during the year and check their balance at any time. Laura signed up for the program in 2020. when she purchased a kayak in July for 1100. later in september she purchased a mountain bike for 2200. in March 2021 she purchased a paddle board for 2100 and used her cheque toward the purchase. A) Record the sale of Kayak and loyalty points. B)Record sale of mountain bike and loyalty points C) Record the sales of paddleboard, use of rewards points, cheque towards its purchase and the rewards points earned on sale. D) In 2020 RPS Co-op had a total pf 497,000 in sales to customers who had signed up with the loyalty program. What is the amount of liability that woudl be created by these sale?MarkosLabs, Inc. sells tattoupées – tattooable toupées for balding men. In 2021, it sold 200 tattoupées for $500 each. For each tattoupée sold, MarkosLabs distributed a 50% discount coupon for purchase of an edible hair net within one month. Based on historical experience, MarkosLabs expects that approximately 20% of the coupons will be utilized. The edible hairnets purchased with the coupons are priced at $150 and normally discounted 10%. What would be the stand-alone sales price used by MarkosLabs for the coupon when allocating the $500 transaction price to performance obligations? (a) $0; (b) $12; (c) $15; (d) $75; or (e) $150.