31PROBLEMSProblem 2-1 (IAA)Miracle Company manufacturers a product that is packagedand sold. A plate is offered to customers sending in threewrappers accompanied by a remittance of P10.ofmData with respect to the premium offer are summarized below.202020213,600,000390,0005,0004,200,000580,0009,000SalesPurchase of premium, P50 per plateNumber of plates distributed as premiumsEstimated number of plates to bedistributed in subsequent periodDistribution cost P20 per plate2,0003,000Required:Prepare journal entries that would be made in 2020 and 2021to record sales, premium purchases and redemptions, andyear-end adjustments.

Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…

Problem 2-1 (IAA) Miracle Company manufacturers 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. 2020 2021 Sales Purchase of premium, P50 per plate Number of plates distributed as premiums Estimated number of plates to be distributed in subsequent period Distribution cost P20 per plate 3,600,000 390,000 5,000 4,200,000 580,000 9,000 2,000 3,000

Problem 2-1 (IAA) Miracle Company manufacturers 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. 2020 2021 Sales Purchase of premium, P50 per plate Number of plates distributed as premiums Estimated number of plates to be distributed in subsequent period Distribution cost P20 per plate 3,600,000 390,000 5,000 4,200,000 580,000 9,000 2,000 3,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 40P

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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?
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