Kane Candy Company offers a coffee mug as a premium for every ten $1.10 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.25 and it costs $1.20 to mail each mug. Kane expects 85% of the candy wrappers to be redeemed during the premium promotion. The results of the premium plan for the 2023 is as follows (assume all purchases and sales are for cash): 2023 Coffee mugs purchased 720,000 Candy bars sold 5,600,000 Wrappers redeemed 2,800,000 Instructions

(a) Prepare the general journal entries that Kane Candy should make in 2023 related to the above plan.

(b) Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Kane Candy Company balance sheet and income statement at the end of fiscal 2023.