The Ayayai Corporation offers a mini piggy bank as a premium for every five chocolate bar wrappers that customers send in along with $2.00. The chocolate bars are sold by Ayayai to distributors for $0.25 each. Ignore any cost of goods sold. The The purchase price of each piggy bank to Ayayai is $1.75; in addition, it costs $0.50 to mail each bank. The results of the premium plan for the years 2020 and 2021 are as follows (all purchases and sales are for cash): 2020 2021 Mini piggy banks purchased Chocolate bars sold Wrappers redeemed 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 240,000 320,000 2,890,000 2,740,000 1,100,000 1,500,000 261,000 341,000 Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the Ayayai Corporation's premium plan using the expense approach under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 2020: Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the Ayayai Corporation's premium plan using the expense approach under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) 2020: Account Titles and Explanation Debit Credit (To record the purchase of mini piggy banks) (To record cash sales) (To record the redemption of wrappers) (To accrue premium expense for premium claims outstanding at 12/31/20) 2021: Account Titles and Explanation Debit Credit (To record the purchase of mini piggy banks) (To record cash sales) (To record the redemption of wrappers) (To accrue premium expense) Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on Ayayai's SFP and the income statement at the end of 2020 and 2021. Amount Account 2020 2021 Classification Inventory of Premiums $ Estimated Liability for Premiums Premium Expense The Ayayai Corporation offers a mini piggy bank as a premium for every five chocolate bar wrappers that customers send in along with $2.00. The chocolate bars are sold by Ayayai to distributors for $0.25 each. Ignore any cost of goods sold. The The purchase price of each piggy bank to Ayayai is $1.75; in addition, it costs $0.50 to mail each bank. The results of the premium plan for the years 2020 and 2021 are as follows (all purchases and sales are for cash): 2020 2021 Mini piggy banks purchased Chocolate bars sold Wrappers redeemed 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 240,000 320,000 2,890,000 2,740,000 1,100,000 1,500,000 261,000 341,000 Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the Ayayai Corporation's premium plan using the expense approach under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 2020: Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the Ayayai Corporation's premium plan using the expense approach under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) 2020: Account Titles and Explanation Debit Credit (To record the purchase of mini piggy banks) (To record cash sales) (To record the redemption of wrappers) (To accrue premium expense for premium claims outstanding at 12/31/20) 2021: Account Titles and Explanation Debit Credit (To record the purchase of mini piggy banks) (To record cash sales) (To record the redemption of wrappers) (To accrue premium expense) Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on Ayayai's SFP and the income statement at the end of 2020 and 2021. Amount Account 2020 2021 Classification Inventory of Premiums $ Estimated Liability for Premiums Premium Expense
