User Account

All Pages

What amount should be reported as premium expense

Assignment Help Accounting Basics
Reference no: EM132567051

Question - Love Company included one coupon in each package sold. A towel is offered as a premium to customers who send in 10 coupons:

For 2017: Packages of cereal sold (50 per pack) - 500,000

Number of towels purchased at P40 per towel - 30,000

Number of towels distributed as premium - 20,000

Number of towels to be distributed as premium next period - 5,000

For 2018: Packages of cereal sold (50 per pack) - 800,000

Number of towels purchased at P40 per towel - 60,000

Number of towels distributed as premium - 50,000

Number of towels to be distributed as premium next period - 3,000

For 2019 Packages of cereal sold (50 per pack) - 900,000

Number of towels purchased at P40 per towel -60,000

Number of towels distributed as premium - 55,000

Number of towels to be distributed as premium next period - 2,000

Required -

1. The journal entry to record purchase of Premiums for 2017:

2. The journal entry to record distributions of Premiums for 2018:

3. The journal entry to record premium liability as of 2019:

4. How many coupons were redeemed for 2017:

5. How many coupons were redeemed for 2018:

6. How many coupons were redeemed for 2019:

7. What amount should be reported as Premium Expense for 2017:

8. What amount should be reported as Premium Expense for 2018:

9. What amount should be reported as Premium Expense for 2019:

10. What amount should be reported as Premium Liability as of 2017:

11. What amount should be reported as Premium Liability as of 2018:

12. What amount should be reported as Premium Liability as of 2019:

13. What is the balance of Premium - Towels as of 2017:

14. What is the balance of Premium - Towels as of 2018:

15. What is the balance of Premium - Towels as of 2019:

Reference no: EM132567051

Questions Cloud

Numbers of atoms in the defective and theoretical : Find the energy required to create vacancy in FCC nickel at room temperature (300 K) if the "defective density" is measured to be 8.493 g/cm3 and it has
What specific aspects about their structure are related : What specific aspects about their structure are related to being "1D" and "2D"? Use sketches where necessary to clarify your response.
Compute closing balance of Retained Earnings for Somersby : Interim Dividends paid $2,500; Profit earned $20,000; Dividends Declared $5,000. Compute the closing balance of Retained Earnings for Somersby Ltd
How much of each product would be released : Use the following reaction to determine how much of each product would be released if 42 000 kg (42 tonnes) of methyl isocyanate reacted
What amount should be reported as premium expense : Number of towels to be distributed as premium next period - 5,000. What amount should be reported as Premium Expense for 2017
What is the final temperature if 305j of heat : The specific heat of a certain type of metal is 0.128 J/(g· What is the final temperature if 305J of heat is added to 64.6 g64.6 g of this metal, initially at 2
Write the formula for the polyatomic ion inmg : Write the formula for the polyatomic ion inMg(OH)2 Express your answer as an ion.
What are the molecular shapes of ccl4 : What are the molecular shapes of CCl4, CH3Cl, and CHCl3? In liquid samples of these compounds, which would have dipole-dipole forces between molecules?
Substances in order of increasing boiling points : List the following substances in order of increasing boiling points:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd