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 Credit 2020 (To record purchase of coffee mugs) 2020 (To record sale of candy bars) 2020 (To record coffee mugs offered for wrappers redeemed) 2020 (To record liability against expected redemption of wrappers) 2021 (To record purchase of coffee mugs) 2021 (To record sale of candy bars) 2021 (To record coffee mugs offered for wrappers redeemed) 2021 (To record liability against expected redemption of wrappers) List of Accounts Part 2 Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Sunland Candy Company balance sheet and income statement at the end of 2020 and 2021.
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 Credit 2020 (To record purchase of coffee mugs) 2020 (To record sale of candy bars) 2020 (To record coffee mugs offered for wrappers redeemed) 2020 (To record liability against expected redemption of wrappers) 2021 (To record purchase of coffee mugs) 2021 (To record sale of candy bars) 2021 (To record coffee mugs offered for wrappers redeemed) 2021 (To record liability against expected redemption of wrappers) List of Accounts Part 2 Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Sunland Candy Company balance sheet and income statement at the end of 2020 and 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 21E: Cash Rebates On January 1, 2020, Fro-Yo Inc. began offering customers a cash rebate of 5.00 if the...
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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
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Account Titles and Explanation
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Debit
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Credit
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2020
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(To record purchase of coffee mugs) | |||
2020
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(To record sale of candy bars) | |||
2020
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(To record coffee mugs offered for wrappers redeemed) | |||
2020
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(To record liability against expected redemption of wrappers) | |||
2021
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(To record purchase of coffee mugs) | |||
2021
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(To record sale of candy bars) | |||
2021
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(To record coffee mugs offered for wrappers redeemed) | |||
2021
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(To record liability against expected redemption of wrappers) |
List of Accounts
Part 2
Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Sunland Candy Company balance sheet and income statement at the end of 2020 and 2021.
Balance Sheet
Balance Sheet
Account Name | Class | 2020 | 2021 | |||
$ | $ | |||
$ | $ |
Income Statement
Account Name | Class | 2020 | 2021 | |||
$ | $ |
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