presented by customers together with P10.00. Each mug costs P90 and in adition, it costs P20 to mail each mug. The results of the premium plan for the years 2020 and 2021 are as follows (purchases and sales are for cash): 2020 960.000 2021 800,000 Coffee mugs purchased Candy bars sold Wrappers redeemed 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 7.500,000 3.800.000 2,600.000 9.000,000 5,600,000 3.600,000 13. Compute for the premium expense in 2020. 14. Compute the liabilities for premium as of December 31, 2021.
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- Sunland Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 to mail each mug. The results of the premium plan for the years 2020 and 2021 are as follows (assume all purchases and sales are for cash): 2020 2021 Coffee mugs purchased 750,000 820,000 Candy bars sold 5,600,000 6,760,000 Wrappers redeemed 2,700,000 4,250,000 2020 wrappers expected to be redeemed in 2021 1,900,000 2021 wrappers expected to be redeemed in 2022 2,680,000 Part 1 Partially correct answer icon Your answer is partially correct. Prepare the general journal entries that should be made in 2020 and 2021 related to the above plan by Sunland Candy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit…Sunland Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 to mail each mug. The results of the premium plan for the years 2020 and 2021 are as follows (assume all purchases and sales are for cash): 2020 2021 Coffee mugs purchased 750,000 820,000 Candy bars sold 5,600,000 6,760,000 Wrappers redeemed 2,700,000 4,250,000 2020 wrappers expected to be redeemed in 2021 1,900,000 2021 wrappers expected to be redeemed in 2022 2,680,000 Part 1 Prepare the general journal entries that should be made in 2020 and 2021 related to the above plan by Sunland Candy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 (To record…I. SweetCandy offers an MP3 download (seven-single medley) as a premium for every five candy bar wrappers presented by customers together with P2.50. The candy bars are sold by the company to distributors for 30 pence each. The purchase price of each download code to the company is P2.25. In addition, it costs P0.50 to distribute each code. The results of the premium plan for the years 2019 and 2020 are as follows. (All purchases and sales are for cash.) 2019 2020 MP3 codes purchased 250,000 330,000 Candy bars sold 2,895,400 2,743,600 Wrappers redeemed 1,200,000 1,500,000 2019 wrappers expected to be redeemed in 2020 290,000 2020 wrappers expected to be redeemed in 2021 350,000 Instructions Prepare the journal entries that should be made in 2019 and 2020 to record the transactions related to the premium plan of the SweetCandy.
- Sycamore Candy offers an MP3 download (seven-single medley) as a premium for every 5 candy bar wrappers presented by customers together with $2.50. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.25. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.) MP3 codes purchased 250,000 330,000 Candy bars sold 2,895,400 2,743,600 Wrappers redeemed 1,200,000 1,500,000 2020 wrappers expected to be redeemed in 2021 290,000 2021 wrappers expected to be redeemed in 2022 (350,000) Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Sycamore Candy.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?Sycamore Candy offers an MP3 download (seven-single medley) as a premium for every five candy bar wrappers presented by customers together with $2.50. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.25. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.) $1000 2020 $1000 2021 MP3 codes purchased 250,000 330,000 Candy bars sold 2,895,400 2,743,600 Wrappers redeemed 1,200,000 1,500,000 2020 wrappers expected to be redeemed in 2021 290,000 2021 wrappers expected to be redeemed in 2022 350,000 Instructions a. Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Sycamore Candy. b. Indicate the account names, amounts, and classifications of the items related to the premium…
- Miracle 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. 2020 2021 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 subsequent period 2,000 3,000 Distribution cost is P20 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.Yummy Candy Company offers a coffee mug as a premium for every ten 50-centavo candy bar wrappers presented by customers together with P1.00. The purchase price of each mug to the company is P0.90; in addition it costs P0.60 to mail each mug. The results of the premium plan for the years 2004 and 2005 are as follows (assume all purchases and sales are for cash): 2004 2005 Coffee mugs purchased Candy bars sold Wrappers redeemed 2004 wrappers expected to be redeemed in 2005 2,600,000 2005 wrappers expected to be redeemed in 2006 960,000 800,000 7,500,000 9,000,000 3,800,000 5,600,000 3,600,000 Requirements: a. Prepare the journal entries that should be made in 2004 and 2005 related to the above plan by Yummy Candy.Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $3.05. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.80. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.) 2020 2021 MP3 codes purchased 315,000 415,800 Candy bars sold 2,630,800 2,667,200 Wrappers redeemed 1,512,000 1,890,000 2020 wrappers expected to be redeemed in 2021 365,400 2021 wrappers expected to be redeemed in 2022 441,000 Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Cheyenne. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are…
- Yummy Candy Company offers a coffee mug as a premium for every ten 50-centavo candy bar wrappers presented by customers together with P1.00. The purchase price of each mug to the company is P0.90; in addition it costs P0.60 to mail each mug. The results of the premium plan for the years 2004 and 2005 are as follows (assume all purchases and sales are for cash): 2004 960,000 7,500,000 2005 Coffee mugs purchased 800,000 Candy bars sold Wrappers redeemed 2004 wrappers expected to be redeemed in 2005 2,6 2005 wrappers expected to be redeemed in 2006 9,000,000 3,800,000 5,600,000 3,600,000 Requirements: a. Compute for the premium expenses in 2004 and 2005, respectively. Assume expectations coincide with actual results. b. Compute for the liabilities for premium as of December 31, 2004 and December 31, 2005, respectively.Yummy Candy Company offers a coffee mug as a premium for every ten 50-centavo candy bar wrappers presented by customers together with P1.00. The purchase price of each mug to the company is P0.90; in addition it costs P0.60 to mail each mug. The results of the premium plan for the years 20X4 and 20X5 are as follows (assume all purchases and sales are for cash): 20X4 20X5 Coffee mugs purchased 960,000 800,000 Candy bars sold 7,500,000 9,000,000 Wrappers redeemed 3,800,000 5,600,000 20X4 wrappers expected to be redeemed in 20X5 2,600,000 20X5 wrappers expected to be redeemed in 20X6 3,600,000 How much are the liabilities for premium as of December 31, 20X4 and December 31, 20X5, respectively?Cheyenne offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.60. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.35. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.) 2020 2021MP3 codes purchased 270,000 356,400Candy bars sold 2,993,500 2,832,900Wrappers redeemed 1,296,000 1,620,0002020 wrappers expected to be redeemed in 2021 313,200 2021 wrappers expected to be redeemed in 2022 378,000 Collapse question part(a)Prepare the journal entries that should be made in 2020 and 2021 to record the…