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Sycamore Candy Company offers an MP3 download (seven-single medley)

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Question;Problem;13-9;Sycamore Candy Company offers an MP3 download (seven-single;medley) as a premium for every 5 candy bar wrappers presented by customers;together with $3.10. 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;$2.85. In addition, it costs 50 cents to distribute each code. The results of;the premium plan for the years 2014 and 2015 are as follows. (All purchases and;sales are for cash.);2014 2015;MP3 codes purchased 315,000 415,800;Candy bars sold 2,959,600 2,776,000;Wrappers redeemed 1,512,000 1,890,000;2014 wrappers expected to be redeemed in 2015 365,400;2015 wrappers expected to be redeemed in 2016 441,000;Don't show me this;message again for the assignment;Prepare the journal entries that should be made in 2014 and;2015 to record the transactions related to the premium plan of the Sycamore;Candy Company. (If no entry is required, select "No Entry" for the;account titles and enter 0 for the amounts. Credit account titles are;automatically indented when amount is entered. Do not indent manually. Round;answers to 0 decimal places, e.g. 1,525.);Account Titles and Explanation Debit Credit;2014;(To record the pemium;inventory.);(To record the;sales.);(To record the;expense associated with the sale.);(To record the;premium liability.);2015;(To record the pemium;inventory.);(To record the;sales.);(To record the;expense associated with the sale.);(To record the;premium liability.);Don't show me this;message again for the assignment;Indicate the amounts for each;accounts, and classifications of the items related to the premium plan that;would appear on the balance sheet and the income statement at the end of 2014;and 2015.;Amount;Account 2014 2015 Classification;Inventory of Premiums $;$;Premium Liability;Premium Expense

 

Paper#49525 | Written in 18-Jul-2015

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