Creamy Candy Company offers a coffee mug as a premium for every ten $50-$cent candy bar wrappersQuestion $13\mathrm{.}2$:

Creamy Candy Company offers a coffee mug as a premium for every ten $50-$cent candy bar wrappers

presented by customers together with $$1\mathrm{.}00.$ The purchase price of each mug to the company is $90$

cents; in addition it costs $60$ cents to mail each mug. The results of the premium plan for the years

$2023$ and $2024$ are as follows $($assume all purchases and sales are for cash$)$:

Instructions

a$)$ Prepare the general journal entries that should be made in $2023$ and $2024$ related to the above

plan by assuming Creamy Candy uses the expense approach.

b$)$ Indicate the account names, amounts, and classifications of the items related to the premium

plan that would appear on the statement of financial position and income statement at the end

of $2023$ and $2024.$

presented by customers together with $$1\mathrm{.}00.$ The purchase price of each mug to the company is $90$

cents; in addition it costs $60$ cents to mail each mug. The results of the premium plan for the years

$2023$ and $2024$ are as follows $($assume all purchases and sales are for cash$)$:

$20232024$

Coffee mugs purchased........................................................................... $480,000400,000$

Candy bars sold........................................................................................ $3,750,0004,500,000$

Wrappers redeemed................................................................................ $1,900,0002,800,000$

$2023$ wrappers expected to be redeemed in $2024.................................1,300,000$

$2024$ wrappers expected to be redeemed in $2025.................................1,800,000$

Instructions

a$)$ Prepare the general journal entries that should be made in $2023$ and $2024$ related to the above

plan by assuming Creamy Candy uses the expense approach.

b$)$ Indicate the account names, amounts, and classifications of the items related to the premium

plan that would appear on the statement of financial position and income statement at the end

of $2023$ and $2024.$