Homework Answers
| Answer | |
| Explanation : | |
| Particulars | Amount |
| Total coupons issued | $ 7,72,900 |
| Redemption rate | 60% |
| Coupen to be redeemed | $ 4,63,740 |
| Add : Handling charges ($463,740 × 10%) | $ 46,374 |
| Total cost | $ 5,10,114 |
| Less : Total payments to retailers | $ -3,36,430 |
| Liability for unredeemed coupons | $ 1,73,684 |
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2. In packages of its products, Skysong Inc. Includes coupons that may be presented at retail...
Presented below are three independent situations. 1. Carla Stamp Company records stamp service revenue and provides...
Presented below are three independent situations.
1. Carla Stamp Company records stamp service
revenue and provides for the cost of redemptions in the year stamps
are sold to licensees. Carla’s past experience indicates that only
80% of the stamps sold to licensees will be redeemed. Carla’s
liability for stamp redemptions was $14,258,200 at December 31,
2019. Additional information for 2020 is as follows.
Stamp service revenue from stamps sold to licensees
$9,643,300
Cost of redemptions (stamps sold prior to 1/1/20)...
1. Vaughn Stamp Company records stamp service revenue and provides for the cost of redemptions in...
1. Vaughn Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Vaughn's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Vaughn's liability for stamp redemptions was $13,481,800 at December 31, 2019. Additional information for 2020 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/20) $8,948,600 6,238,300 If all the stamps sold...
please assist with these two 1. Sandhill Starmp Company records stamp service revenue and provides for...
please assist with these
two
1. Sandhill Starmp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sandhill's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $13,229,600 at December 31, 2016. Additional information for 2017 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/17) 9,576,200 If...
1. Hairston Stamp Company records stamp service revenue and provides for the cost of redemptions in...
1. Hairston Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Hairstons past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Hairstons liability for stamp redemptions was $13,000,000 at December 31, 2013. Additional information for 2014 is as follows. Stamp service revenue from stamps sold to licensees 9,500,000 Cost of redemptions (stamps sold prior to 1/1/14) 6,000,000 If all the stamps sold...
se Cereal frequently distributes coupons to promote new products. On October 2, 2018, Case mailed 900,000...
se Cereal frequently distributes coupons to promote new products. On October 2, 2018, Case mailed 900,000 coupons for $0.35 off each box of cereal purchased. Case expects 110,000 of these coupons to be redeemed before the March 31, 2019, expiration date. Case reimburses the retailers an additional s0. 05 for each coupon redeemed. As of December 31, 2018, Case had paid retailers $23,000 related to these coupons and had 40,000 coupons on hand that had not been processed for payment...
Case Cereal distributed 875,000 coupons on 10/2/18 each coupon gets $0.50 off each box of cereal...
Case Cereal distributed 875,000 coupons on 10/2/18 each coupon gets $0.50 off each box of cereal purchased. It is expected that 125,000 coupons redeemed by 3/31/19, expiration date. Retailer where paid an additional $0.05 for each coupon redeemed. As of 12/31/18, retailers where paid $31,625 to the coupons and had on hand 50,000 coupons that had not been processed for payment. Determine the coupon (premium) liability to be reported on the 12/31/18, balance sheet.
Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience...
Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience the estimated warranty costs related to dollar sales are first year after sale—2% of sales revenue; second year after sale—3% of sales revenue; and third year after sale—5% of sales revenue. Sales and actual warranty expenditures for the first 3 years of business were: Sales Revenue Warranty Expenditures 2016 $ 760,900 $ 6,570 2017 1,133,300 18,310 2018 1,191,700 57,790 Liability should be reported on...
P13.14 - Schmitt Company must make computations and adjust entries for the following independent situations on December 31, 2021
P13.14 - Schmitt Company must make computations and adjust entries for the following independent situations on December 31, 2021.Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience the estimated warranty costs related to dollar sales are first year after sale—2% of sales revenue; second year after sale—3% of sales revenue; and third year after sale—5% of sales revenue. Sales and actual warranty expenditures for the first 3 years of business were:Sales Warranty ...
The following is taken from the Skysong, Inc. balance sheet. Interest is payable annually on January...
The following is taken from the Skysong, Inc. balance sheet.
Interest is payable annually on January 1. The bonds are
callable on any annual interest date. Skysong uses straight-line
amortization for any bond premium or discount. From December 31,
2019, the bonds will be outstanding for an additional 10 years (120
months).
can you help me answer the last part of the
question?
The following is taken from the Skysong, Inc. balance sheet. Skysong, Inc. Balance Sheet (partial) December 31,...
In Year 4, the firm distributed $60,000 worth of coupons for use by customers when they...
In Year 4, the firm distributed $60,000 worth of coupons for use by customers when they buy certain products. The management of the firm estimates that 25% of the coupons will be redeemed. The coupons have no expiration date. The management of the firm authorizes merchants to add 20% to the value of coupons redeemed to offset management’s ‘pain and suffering’ when dealing with these coupons. During the year, payments of $11,500 have been made to merchants redeeming coupons. This...
Presented below are three independent situations.
1. Carla Stamp Company records stamp service
revenue and provides for the cost of redemptions in the year stamps
are sold to licensees. Carla’s past experience indicates that only
80% of the stamps sold to licensees will be redeemed. Carla’s
liability for stamp redemptions was $14,258,200 at December 31,
2019. Additional information for 2020 is as follows.
Stamp service revenue from stamps sold to licensees
$9,643,300
Cost of redemptions (stamps sold prior to 1/1/20)...
1. Vaughn Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Vaughn's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Vaughn's liability for stamp redemptions was $13,481,800 at December 31, 2019. Additional information for 2020 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/20) $8,948,600 6,238,300 If all the stamps sold...
please assist with these
two
1. Sandhill Starmp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sandhill's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $13,229,600 at December 31, 2016. Additional information for 2017 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/17) 9,576,200 If...
se Cereal frequently distributes coupons to promote new products. On October 2, 2018, Case mailed 900,000 coupons for $0.35 off each box of cereal purchased. Case expects 110,000 of these coupons to be redeemed before the March 31, 2019, expiration date. Case reimburses the retailers an additional s0. 05 for each coupon redeemed. As of December 31, 2018, Case had paid retailers $23,000 related to these coupons and had 40,000 coupons on hand that had not been processed for payment...
The following is taken from the Skysong, Inc. balance sheet.
Interest is payable annually on January 1. The bonds are
callable on any annual interest date. Skysong uses straight-line
amortization for any bond premium or discount. From December 31,
2019, the bonds will be outstanding for an additional 10 years (120
months).
can you help me answer the last part of the
question?
The following is taken from the Skysong, Inc. balance sheet. Skysong, Inc. Balance Sheet (partial) December 31,...
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