Miracle Company manufactures a product that is packaged and sold. Each sale is accompanied by 3 coupons to be able to purchase a plate. A plate is offered to customers sending two coupons accompanied by a remittance of P2. 2018 2019 Sale @ 250 Purchase of premium, P10 per plate Number of plates distributed as premiums Premiums distributed Distribution cost P5 per plate QUESTIONS: 1) What is the premium expense for 2018? 2) How much is the premium liability as of December 31, 2019? 4,200,0003,600,000 580,000 390,000 80% 70% 17,000 13,000
Q: Marichu Company manufactures a special product. To promote the sale of the product, a premium is…
A: Here calculation of Premium expenses which are incurred in the financial year of 2022. For…
Q: BCD Company included one coupon in each box of cereal sold. A bowl was offered as a premium to…
A: Boxes of cereal sold in 2020 = 3,000,000 No. of coupons issued = 3,000,000 No. of coupons expected…
Q: On 1 – 4 – 2018 Ms. Bushra Al Khair LLC buys 100 Apple phone @ 325 each from a local supplier. The…
A: Accounts payable (AP) is a general ledger account that shows a company's obligation to pay a…
Q: Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund…
A: Given information is: In January 2020, a retailer sells 500 paper shredders to customers for $100…
Q: How much of the sales should be allocated to the award points? How much should be recognized as…
A: The stand-alone selling price of 1 loyalty point = P 20 During 2020, no of points customer earned =…
Q: Beta Ltd manufactures laptops. Cellar Ltd routinely buys laptops from Beta Ltd. On 1 June 2021, Beta…
A: journal entry is the first step that is considered by the business when they sell they are good…
Q: In an effort to increase sales, DARIO Company inaugurated a sales promotional campaign on June 30,…
A: Liabilities means the obligations and dues which needs to be paid off by the business. Premium…
Q: Edmonds Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are…
A: Record the purchase of premiums.
Q: No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are…
A:
Q: Wynn Company offers a set of building blocks to customers who send in 3 UPC codes from Wynn cereal,…
A: Following are the journal entries of Wynn’s as on December 31,2020:
Q: The Western Canada Luggage Company its customers a gift set if the customer purchases 2 suitcases.…
A: A journal entry is a type of accounting entry that is being used to represent a financial…
Q: ABC Company included one coupon in each box of cereal sold. A bowl was offered as a premium to…
A: Boxes of cereal sold in 2020 = 3,000,000 Number of coupons issued @ one coupon in each box =…
Q: Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers…
A: Solution:-1 Preparation of the journal entries in year of 2020 related to the premium plan of the…
Q: Sheffield Corp. purchased a delivery van with a $79000 list price. The company was given a $5800…
A: Given: List price = $79,000 Cash discount = $5,800 Sales tax = $2,600 Insurance = $1,800
Q: Tamarisk Company includes one coupon in each box of soap powder that it packs, and 10 coupons are…
A: Journal entry is the entry which is recorded at the time when a business transaction takes place and…
Q: Buyer A bought 20 pcs of product Z from Seller B with the following information: Selling price,…
A: Inventory- Inventory refers to the physical stock of items owned by a company at any given time.
Q: Headland Company sells goods to Sage Company during 2017. It offers Sage the following rebates based…
A: Revenue = Gross sales price - Rebate
Q: Adil is paid a commission amount of 2280 RO. During January 2020, his sales were 38,000 RO. What is…
A: Commission is the amount paid to the salesperson or agent in exchange of services provided by such…
Q: In an effort to increase sales, Mill Company inaugurated a sales promotional campaign on June 30,…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: presented by customers together with P10.00. Each mug costs P90 and in adition, it costs P20 to mail…
A:
Q: WENDOLYN Company manufactures noodles. To promote the sale of GWENDOLYN's products, premium is…
A: Introduction As per IAS, Revenue recognition as per contract says that if there is premium or…
Q: BLITZKRIEG Co. purchases goods for P250,000 under a special credit period of 1 year. The seller…
A: Accounting is done on the historical cost concept, which states that transactions are recorded at a…
Q: Case Cereal frequently distributes coupons to promote new products. On October 2, 2021, Case mailed…
A: The liabilities that arise as a result of happening or non-happening of an uncertain future event…
Q: Fry Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Fry boxes and…
A: Solution : Total boxes sold 675000 Boxes that is estimated to be sent by customers (60% of…
Q: Within 10 days following a sale, a company receives payment of a $20,000 account receivable with…
A: Sales discount = Accounts receivable x rate of discount
Q: Cascade Company manufactures a single laundry soap. A towel is offered as a premium to customers who…
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Dairy, Inc. offered an ice cream scoop in exchange for 8 labels of ice cream and $3.00. The ice…
A: Premium expenses are those expenses which company incurs when they provide the sales with the…
Q: Bhd purchased an additional 3,000 boxes of masks from D'Mask. D'Mask then estimated that Topeng…
A: The question deals with IFRS 15 "Revenue from contracts with customers". As per IFRS 15, revenue is…
Q: Xoiswa Company manufactures a product that is packaged and sold. A plate is offered to customers…
A: Solution A journal is a company's official book in which all business transactions are recorded in…
Q: Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based…
A: Workings: Given values: for 10000 units rebate = 2 %
Q: Cavite Mall grants its customers one reward point for each P100 sales for the year 2021 only. Each…
A: Total points = $2500000 Given that 50% of granted points are redeemed i.e = 50%(P2500000) = P1250000…
Q: ROSE Corporation has a premiums payable balance of P242,000 on December 31, 2019 for a promotional
A: These are obligation which are to be paid with in one year and one operating cycle, whichever is…
Q: 0 sale. Each point is redeemable in the form of peso discount. The customer can earn 1 point for…
A: The operating activities are the sale of goods and services and rent revenue. Unearned revenue is…
Q: Given: The 456 Company purchased office supplies from A-One Supplies worth P80,000 on April 04,…
A: In the given question, A-one Supplies has offered a trade discount of 5% and 2%: It implies that…
Q: Company manufacturers a product that is packaged and sold. A plate is offered to customers sending…
A: The distribution cost per plate is P20 and there is a remittance of P10 per plate. we will pass the…
Q: . LALA Department store grants loyalty awards to its customers wherein for every P 100 purchase…
A: Hi student Since there are multiple questions, we will answer only first question. Customer loyalty…
Q: Excellent Company manufactures a product that is packaged and sold. A plate is offered to customers…
A: The following transactions are journalized to show the calculations in the records of Excellent…
Q: PROBLEM 2 During 2020, ABC Co. sold 100,000 boxes of cake mix under a new sales promotional program.…
A: Liability means the amount which is to be paid to an outsider by business. It is the present…
Q: In January 2020, a retailer sells 200 paper shredders to customers for $100 each. The terms of the…
A:
Q: JIN Corporation started a promotional program. A towel is offered as a premium to customers who se…
A: Business transaction analysis. The following are the four stages of business transaction analysis:…
Q: NY Company offers a set of building blocks to customers who send in 3 UPC codes from NY cereal along…
A: Adjusting entries: These entries are posted in the books to recognize income or expense for the…
Q: Jump & Play Inc. sold 10 outdoor playsets to BigMart Co. The playsets are listed at $1,500 each;…
A: Receivable will be recorded at the listed price less trade discount.
Q: On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold,…
A: Liability are the claims or obligations which arises due to past, present and future events. These…
Q: Sheridan offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers…
A: A journal entry is a type of accounting entry that is used to record a business transaction in a…
Q: Miracle Company manufactures a product that is packaged and sold. A plate is offered to customers…
A: Here the problem which are related with the premium offer in the sales which are offered to the…
Q: A company offers a cash rebate of P1 on each P4 package of light bulbs sold since 2015.…
A: Cash rebate is the form of discount that is being provided to customers on purchase of products.…
Q: A manufacturer offers a 25/20 c discount if the invoice subtotal is $1,000. If the list price is $52…
A: Companies gives discount to attract the sales and increase the sales of company but that is the cost…
Q: ABC company offers P15 rebates for Product GH sold during 2020, It is estimated that 25% of the…
A: Formula: Total Rebate units = Units sold x Estimated Percentages Rebate liability = Rebate expense -…
Q: SweetCandy offers an MP3 download (seven-single medley) as a premium for every five candy bar…
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 1. Sebastian Company includes one coupon in each box of hotcake mix it sells. A spoon isoffered as a premium to customers who presents 10 coupons and a cash remittance ofP10.00.Cost of distributing the premium is P5.00. Experience indicates that only 30% of thecoupons will be redeemed 2020 2021Boxes of hotcake mix sold 2,000,000 2,500,000Number of spoons purchased at P50 each 50,000 80,000Coupons redeemed 400,000 700,000Required:a. Compute for the premium expense for the year 2020b. Compute the estimated premium liability on December 31, 2020c. Compute for the premium expense for the year 2021d. Compute for the estimated premium liability on December 31, 2021Eres Hermoso Company includes one coupon in each box of laundry soap it sells. A towel is offered as a premium to customers who send in 10 coupons and a remittance of P20. 2022 2023 Boxes of soap sold 1,000,000 1,500,000 Number of towels purchased at P100 each 25,000 40,000 Coupons redeemed 200,000 350,000 The experience of the entity indicates that only 30% of the coupons will be redeemed. What is the estimated liability for premiums on December 31, 2023? Eres Hermoso Company includes one coupon in each box of laundry soap it sells. A towel is offered as a premium to customers who send in 10 coupons and a remittance of P20.…Use the information for the next four (4) questions. BCD Company included one coupon in each box of cereal sold. A bowl was offered as a premium to customers who send in 15 coupons and a remittance of P15. Distribution cost of premium is P7.5. Experience indicated that only 30% of the coupons will be redeemed. 2020 2021 Boxes of cereal sold 3,000,000 3,750,000 Number of bowls purchased at P75 each 75,000 120,000 Coupons redeemed 600,000 1,050,000 A.) What is the premium expense for 2020? B.) What is the premium liability on December 31, 2020? C.) What is the premium expense for 2021? D.) What is the premium liability on December 31, 2021?
- ABC Company includes one coupon in each box of laundry soap it sells. A towel is offered as premium to customers who send in 10 coupons and a remittance of P20. Data of the premium offer are: 2019 2020 Boxes of soap sold 500,000 800,000 No. of towels purchased (P100 per towel) 20,000 25,000 Coupons redeemed 140,000 200,000 ABC Company's experience indicates that only 30% of the coupons will be redeemed. How much is the estimated liability for premiums on December 31, 2020? Round answer to whole number.Las Piñas Company includes one coupon in each package of cereal it sells. A towel is offered as a premium to customers who send in 10 cuopons. Data for the premium offer are: 2018 2019 Packages of cereal sold 500,000 800,000 # of towels purchased at 40 per towel 30,000 60,000 # of towels distributed as premiums 20,000 50,000 # of towels to be distributed as premium Next period 5,000 3,000 In its 2019 income statement, what amount of premium expense should be reported?Use the information for the next four (4) questions. ABC Company included one coupon in each box of cereal sold. A bowl was offered as a premium to customers who send in 15 coupons and a remittance of P15. Distribution cost of premium is P7.5. Experience indicated that only 30% of the coupons will be redeemed. 2020 2021 Boxes of cereal sold 3,000,000 3,750,000 Number of bowls purchased at P75 each 75,000 120,000 Coupons redeemed 600,000 1,050,000 1. What is the premium expense for 2020? 2. What is the premium liability on December 31, 2020? 3. What is the premium expense for 2021? 4. What is the premium liability on December 31, 2021?
- Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below).Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation)How much is the Total Revenue to be recognized in 2021?Phoenix Company, places a coupon in each box of its product. Customers may send in ten coupons and P3.00, and the company will send them a romantic pillow. Sufficient pillows were purchased at P5.40 a piece. During 2019, 1,260,000 boxes were sold. It was estimated that a total of 5% of the coupons will be redeemed. In 2019, 18,000 coupons were redeemed. How much is the premium expense for the year 2019?Xoiswa Company manufactures 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: 2018 2019 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in next period 2,000 3,000 Distribution cost P20 per plate What is the premium expense for 2019?
- Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2019, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2019. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2019. Required: 1. Prepare the journal entries related to the sale of dates and the premium plan in 2019. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.Excellent Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P20. Data with respect to the premium offer are summarized below: Sales Purchase of premium, P50 per plate Number of plates distributed as 3,800,000 4,000,000 380,000 560,000 premium 4,500 8,000 Estimated number of plates to be distributed in subsequent period 2,500 3,500 Distribution cost P10 per plate Required: Prepare journal entries that would be made in 2020 and 2021 to record sales, premium purchases and redemptions, and year-end adjustments.Dairy, Inc. offered an ice cream scoop in exchange for 8 labels of ice cream and $3.00. The ice cream scoops cost $7.00 each. Experience indicates that 45% of the coupons will be redeemed. Customers can redeem the coupons, receipts and cash through February 28, 2021. Dairy, Inc. sold 40,000 gallons of ice cream. 15,000 of the coupons were redeemed in 2020. What is the amount of premium expense to be recognized on the income statement for the year ended 2020? If all of the remaining ice cream scoops were issued in 2021, what is the amount of the premium expense to be recognized in 2021? What is the amount of the premium liability as of 12/31/20? Please provide a detailed explanation.