PRINTER VERSION BACK BACK NEXT Problem 155 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): G Coffee mugs purchased Candy bars sold Wrappers redeemed 2017 wrappers expected to be redeemed in 2018 2018 wrappers expected to be redeemed in 2019 2017 730,000 5,400,000 2,700,000 2,100,000 2 2018 800,000 6,670,000 4,230,000 ,710,000 Your answer is partially correct. Try again. Prepare the general journal entries that should be made in 2017 and 2018 related to the above plan by Kane Candy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation T .25.000 2017 Inventory of Premiums 1,752,000 Cash (To record purchase of coffee mugs) 2017 cash 5,400,000 Ong KO WA 9] PO DE UM T 108,000 Cash 1 540,000 Premium Expense 648,000 T T Inventory of Premiums (To record coffee mugs offered for wrappers redeemned) 2017 Premium Expense 210,000 STREET 210,000 210,000 1 Premium Liability (To record lability against expected redemption of wrappers in 2018) 2018 inventory of Premiums i 1920,000 1 T L 1920,000 Cash To record purchase of coffee mugs) 2015 Cash 1 6 .670,000 T I T 6,670,000 Sales Revenge To record sale of candy bars) 2015 Cash 169,200 210,000 Premium ability - 6 A 9 x] PS (To record purchase of coffee mugs) 2018 | Cash 6,670,0 6,670,000 Sales Revenue To record sale of candy bars) 2018 Cash 169,200 Premium Lability TAMM 210,000 Premium Expense 636,000 T T 1,015,200 T Inventory of Premiums (To record coffee mugs offered for wrappers redeemed) 2018 Premium Expense 271,000 T Premium Lability To record against expected redemption of wrappers in 2019) 271,000 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. 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 ment at the end of 2017 and 2018. Balance Sheet Account Name 2018 Invertory of Pretius Current Auto 2,008,800 Premium Liability Current Lablity Income Statement Account Name Show Work is REQUIRED for this questions Ooen black Show Work Coy Show Werken met LUMEA E mmand command option
