The STU Co. manufactures a cake mix that are later sold in boxes. A bowl set...
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The STU Co. manufactures a cake mix that are later sold in boxes. A bowl set is given to customers returning ten(10) box tops accompanied by a cash of P4.00. Data with respect to the premium offer are summarized below: Cake mix sales (P19.20) Bowl set purchases (P11.20/set) No. of bowls distributed 2019 P1,584,000 61,600 4,000 sets 2020 P1,920,000 67,200 5,500 sets The company expects about 80% of the box tops will be returned in for the bowl set. REQUIRED: 1. Prepare the entries in 2019 and 2020 to record the following: cake mix sales, purchase of bowl sets; and distribution of bowl sets. Include year-end adjusting (Dec. 31) and closing entries. 2. Determine the balances of the following balance sheet accounts as of Dec. 31, 2019 and Dec. 31, 2020: a. Premiums Inventory b. Estimated Premiums Payable 3. Determine the balances of the following income statement accounts for 2019 and 2020: a. Sales b. Premiums Expense The STU Co. manufactures a cake mix that are later sold in boxes. A bowl set is given to customers returning ten(10) box tops accompanied by a cash of P4.00. Data with respect to the premium offer are summarized below: Cake mix sales (P19.20) Bowl set purchases (P11.20/set) No. of bowls distributed 2019 P1,584,000 61,600 4,000 sets 2020 P1,920,000 67,200 5,500 sets The company expects about 80% of the box tops will be returned in for the bowl set. REQUIRED: 1. Prepare the entries in 2019 and 2020 to record the following: cake mix sales, purchase of bowl sets; and distribution of bowl sets. Include year-end adjusting (Dec. 31) and closing entries. 2. Determine the balances of the following balance sheet accounts as of Dec. 31, 2019 and Dec. 31, 2020: a. Premiums Inventory b. Estimated Premiums Payable 3. Determine the balances of the following income statement accounts for 2019 and 2020: a. Sales b. Premiums Expense
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Part 1 Prepare Entries 2019 Entries Cake Mix Sales Debit Cash or Accounts Receivable Ac P1584000 Credit Sales Ac P1584000 To record cake mix sales Pur... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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