$($PLEASE DO BOTH QUESTIONS $8$ AND $9.$ I HAVE ALSO ATTACHED THE FORMAT OF THE ANSWERS IN THE PICTURES. PLEASE REFER TO THOSE WHEN ANSWERING THE QUESTIONS. THANK YOU SO MUCH!!! a$)$ Calculate the amount of Magic Bux that were given out in May.

b$)$ Calculate the amount of Magic Bux from May that will be redeemed $($based on the estimate

given$).$

c$)$ & d$)$ b$)$Question $8$: Uncertain Liabilities $(11$ marks$)$

Martin's Magic gives out Magic Bux, which can be redeemed on future purchases from the store. $2\%$ of all

cash sales are given out in Magic Bux. Martin's Magic estimates that $90\%$ of all Magic Bux will be

redeemed in the future.

In May, J&J$\text{'}$s made a total of $$40,000$ in cash sales. Also, a total of $$1,000$ of Magic Bux were redeemed in

May.

a$)$ Calculate the amount of Magic Bux that were given away in May. $(2$ Marks$)$

b$)$ Calculate the amount of Magic Bux from May that will be redeemed $($based on the estimate given$).$

$(2$ Marks$)$

c$)$ Record the journal entry to recognize the Magic Bux that were earned in May. $(2$ Marks$)$

d$)$ Record the journal entry to recognize the Magic Bux that were redeemed in May. $(3$ Marks$)$

Question $9$: Installment notes payable $(10$ marks$)$

On January $1^{st},2024$ Martin's Magic is considering financing a new project by issuing a $5-$year promissory

note. The note would have a face value of $$20,000$ and an annual interest rate of $12\%.$ The company is

going to pay this note off making annual payments that will be blended payments of interest and principal

totalling $$5,548\mathrm{.}14.$

a$)$ Complete an amortization schedule if the company is going to pay this note off making annual

payments that will be blended payments of interest and principal totalling $$5,548.14.(5$ marks$)$

b$)$ Complete an amortization schedule if the company is going to pay this note off making annual

payments that will be fixed principal payments of $$4,000.(5$ marks$)(5$ Marks$)$