Cullumber Inc. is a publicly traded snack food company focused on snacks and candies from around...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cullumber Inc. is a publicly traded snack food company focused on snacks and candies from around the world. On a monthly basis, the company boxes snacks and candies from a different country, along with facts about each and a scorecard for tracking favourites. The boxes can be purchased at specialty shops and are available for annual subscription. The consumer can choose between two annual subscriptions, the Good Box for $156 annually and the Oh So Good Box for $216 annually. Subscriptions are paid in advance and are non-cancellable. Cullumber sold for cash 9,500 subscriptions on October 1, 2020, of which 20% were Oh So Good Box subscriptions. Single Good Boxes can be purchased at specialty shops. Cullumber charges the shops $9 per box. Normally, 2,500 boxes are delivered to specialty shops each month, with 20% of these being returned unsold. Of the 2,500 boxes sent out in October 2020, all were sold on account, and none of the returned boxes are expected to be resold and are scrapped. Unsold boxes are returned by shops in the following month. The products in the Good Boxes cost Cullumber $3 per box, while the products in the Oh So Good Box cost Cullumber $10 per box. Prepare the required summary journal entries for the contract based on your analysis in part (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places, e.g. 125. List all debit entries before credit entries.) Oct. 1 ✓ Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Account Titles and Explanation (To record revenue through subscriptions.) (To record cost of goods sold through subscriptions.) (To record sales other than through subscriptions.) (To record cost of goods sold other than through subscriptions.) Debit Credit Cullumber Inc. is a publicly traded snack food company focused on snacks and candies from around the world. On a monthly basis, the company boxes snacks and candies from a different country, along with facts about each and a scorecard for tracking favourites. The boxes can be purchased at specialty shops and are available for annual subscription. The consumer can choose between two annual subscriptions, the Good Box for $156 annually and the Oh So Good Box for $216 annually. Subscriptions are paid in advance and are non-cancellable. Cullumber sold for cash 9,500 subscriptions on October 1, 2020, of which 20% were Oh So Good Box subscriptions. Single Good Boxes can be purchased at specialty shops. Cullumber charges the shops $9 per box. Normally, 2,500 boxes are delivered to specialty shops each month, with 20% of these being returned unsold. Of the 2,500 boxes sent out in October 2020, all were sold on account, and none of the returned boxes are expected to be resold and are scrapped. Unsold boxes are returned by shops in the following month. The products in the Good Boxes cost Cullumber $3 per box, while the products in the Oh So Good Box cost Cullumber $10 per box. Prepare the required summary journal entries for the contract based on your analysis in part (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places, e.g. 125. List all debit entries before credit entries.) Oct. 1 ✓ Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Account Titles and Explanation (To record revenue through subscriptions.) (To record cost of goods sold through subscriptions.) (To record sales other than through subscriptions.) (To record cost of goods sold other than through subscriptions.) Debit Credit
Expert Answer:
Answer rating: 100% (QA)
Account Titles and Explanation Debit Credit Oct 1 Cash156000 Unearned Subscription Revenue156000 To record cash received for annual subscriptions Oct 31 Unearned Subscription ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley
Posted Date:
Students also viewed these accounting questions
-
Best Snacks Inc. is a publicly traded snack food company focused on snacks and candies from around the world. On a monthly basis, the company boxes snacks and candies from a different country, along...
-
The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box. Use a separate...
-
World Imports buys products from around the world for import into the United States. The firm is organized into a number of separate regional sales districts that sell the imported goods to retail...
-
Arvind runs a small electronics company in India and has just sold some equipment to a U.S. company for $1 million to be paid in 90 days. His cost in Indian Rupees (INR) is 60 million. The current...
-
WHAT IF THE FACTS WERE DIFFERENT? Suppose that Salmon had disclosed Gerrys proposal to Meinhard, who had said that he was not interested. Would the result in this case have been different? Explain....
-
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahans common stock currently sells for $22.00 per share, its last dividend...
-
Explain the difference between a. Actors and stakeholders. b. Primary and supporting actors.
-
A father decides to put his two sons to work landscaping. The business involves going to a customers home and providing landscaping services (cut grass, edge sidewalk, pull weeds in flower beds,...
-
What is a fair price of a 28-year semi-annual coupon bond, with a coupon rate of 5.15%, a face value of $1000, and a yield-to-maturity of 9.81%? What is the yield?
-
Web site, which contains Henley Corporation?s most recent financial statements. Use the following ratios and other selected information for the current and projected years to answer the questions...
-
Let G = 10 11 (112) 0 1 1 be a generating matrix for a linear code Cover F3. Part 1. (10 points) Prove that C is self-dual and find d(C). Part 2. (10 points) Suppose we use C for information...
-
On what assumptions is the basic model of the optimal lot size based and to what extent are they problematic?
-
How are the characteristics of static calculations? And dynamic calculations?
-
Would it be legal for the hotel to exclude some customers from the restrictions? While important, rules may sometimes create more problems than they resolve. Websites like TripAdvisor are valuable...
-
What are the advantages and disadvantages of a low degree of centralization of procurement?
-
What is meant by cost lag?
-
If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be? 22 Cash had a normal starting...
-
From a medical tourist perspective, compare Shouldice with the traditional hospital in terms of the key factors of competition. Using Table 15-3, why would Shouldice attract patients from outside the...
-
If a company has a net loss of $5 million for the year, does its cash go down by $5 million as a result? Explain.
-
Amos Satellites Inc., a satellite communication provider, wants to develop the Internet of Things (IoT) by launching a constellation of next-generation satellites in a low Earth orbit (LEO). Amos...
-
Explain, in your own words, the going concern assumption and what the implications are in terms of a companys financial statements if the assumption is not valid.
-
Which of the following statements are hypotheses? (a) Heavier objects fall to Earth faster than lighter ones. (b) The planet Mars is inhabited by invisible beings that are able to elude any type of...
-
A couple in a sport-utility vehicle (SUV) is traveling at 90 km/h on a straight highway. The driver sees an accident in the distance and slows down to 40 km/h in
-
(a) How many significant digits are there in \(403.54 \mathrm{~kg}, 3.010 \times 10^{57} \mathrm{~m}\), \(2.43 \times 10^{-3} \mathrm{~s}, 14.00 \mu \mathrm{m}, 0.0140 \mathrm{~s}, 5300...
Study smarter with the SolutionInn App