Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stellar Company offers an MP3 download even single medley as a premiun for every Scandy bar wrappers presented by customers together with $3.30. The candy
Stellar Company offers an MP3 download even single medley as a premiun for every Scandy bar wrappers presented by customers together with $3.30. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $3.05. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. All purchases and sales are for cash.) 2017 2018 MP3 codes purchased 300.000 448.900 Candy bars sold 2.665.300 2.676 600 Wrappers redeemed 1632.000 2.040.000 2017 wrappers expected to be redeemed in 2018 394,400 2018 wrappers expected to be redeemed in 2019 476000 Part 1 - Your answer is partially correct for the amounts. Credit account titles are automatically indented when amount is entered. Do not Prepare the journal entries that should be made in 2017 and 2018 to record the transactions related to the premium plan of the Stellar Company.corne entry is required, select "No Entry for the account titles and enter indent mensely. Round answers to decimal places, s. 1.525.) Account Titles and Explanation 2017 1037000 1037000 Inventory of Premiums TH (To record the premium inventory) Cash Sales Revenue (a record the sales.) 799590 200500 Premium Expense Inventory of Premium (to record the expense associated with the sale Premium Expense 81,600 P ability (To record the premium liability) Inventory of Premium 8143630 (To record the premium inventory) Sales Revenue (o record these Premium Liability Inventory Premiums (To record the expense associated with the sale) Premium Expense Premium Liability (o record the premium liability) Part 2 Indicate the amounts for each accounts and classications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2017 and 2018 Account Inventoryal Premiums S Premium Liability Premium Expense eTextbook and Media List of Accounts Attempt of 15 uued
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started