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ACC - Module 1: Problem 1 - Paige Candy Company

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Question;Module 1: Problem 1.;Paige 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 $1.80, in addition it costs;$1.20 to mail each mug. The results of the premium plan for the years 2012 and;2013 are as follows (assume all purchases and sales are for cash);2012 2013;Coffee mugs purchased 720,000 800,000;Candy bars sold 5,600,000 6,750,000;Wrappers redeemed 2,800,000 4,200,000;2012 wrappers expected to be redeemed in 2013;2,000,000;2013 wrappers expected to be redeemed in 2014;2,700,000;Instructions;(a) Prepare the general journal entries that;should be made in 2012 and 2013 related to the above plan by Paige Candy.;(b) Indicate the account names, amounts, and;classifications of the items related to the premium plan that would appear on;the Paige Candy Company balance sheet and income statement at the end of 2012;and 2013.

 

Paper#40574 | Written in 18-Jul-2015

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