5. Kane 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 2017 and 2018 are as follows (assume all purchases and sales are for cash): 2017 20,0002018 Coffee mugs purchased Candy bars sold Wrappers redeemed mas sold 800,000 5,600,000 2,800,000 6,750,000 4,200,000 2017 wrappers expected to be redeemed in 2018 2018 wrappers expected to be redeemed in 2019 2,000,000 2,700,000 Instructions - Show calculations Prepare the general journal entries that should be made in 2017 and 2018 the purchase of the mugs, sale of the candy bars, redemption of wrappers and the premium liability as of the end of 2017 and 2018. (hint: prepare four entries for 2017 and then prepare four entries for 2018. Account titles are in bold in item b below) Use the attached journal entry forms (a) Determine the Premium Expense to be reported on the Income Statement, the Inventory of Premiums on the Balance Sheet, and the Premium Liability on the Balance Sheet for 2017 and 2018 and enter answers in the form below. (b) 2017 2018 Inventory of Premiums Premium Liability Premium Expense