Determine the premium expense to be reported

Assignment Help Accounting Basics
Reference no: EM132559713

Question - Edwards Co. includes one coupon in each bag of dog food it sells. In return for 4 coupons, customers receive a dog toy that the company purchases for $1.20 each. Edwards's experience indicates that 60 percent of the coupons will be redeemed. During 2014, 100,000 bags of dog food were sold, 12,000 toys were purchased, and 40,000 coupons were redeemed. During 2015, 120,000 bags of dog food were sold, 16,000 toys were purchased, and 60,000 coupons were redeemed.

Instructions - Determine the premium expense to be reported in the income statement and the premium liability on the statement of financial position for 2014 and 2015.

Reference no: EM132559713

Questions Cloud

Predictive process and shipment timing process : How would an auto part manufacturer (aka Tier 1 manufacturers) use predictive process and the shipment timing process?
Why does the keynesian view of the demand : Why does the Keynesian view of the demand for money suggest that velocity is unpredictable? Provide examples.
Explain why selected that writing process : Explain why you selected that writing process. Respond to at least two peer posts with your thoughts about the writing process they shared.
Growth at the expanse of high inflation : If the central bank is not independent what would be the impact of this in terms of the important macreocnomic variables, trade balance and exchange rate?
Determine the premium expense to be reported : Determine the premium expense to be reported in the income statement and the premium liability on the statement of financial position for 2014 and 2015
What kind of monetray policy do you recommend : You are the economic advisor of a hypothetical country Macronesia. You country has big current account deficit, inflation and unemployment problems
How might a poorly specified sampling frame forestall : The sampling frame is arguably the most critical element of a study's sampling plan. Why is this so? How might a poorly specified sampling frame forestall
Compute the share of Garachico in the loss of realization : Assume that a debit balance of any partner's capital is uncollectible. Compute the share of Garachico in the loss of realization
Discuss the meaning of distributive justice and paternalism : What does this statement mean? Provide arguments for or against this viewpoint. Discuss the meaning of Distributive Justice and Paternalism

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd