How much is the unearned revenue from unredeemed premiums

Assignment Help Accounting Basics
Reference no: EM132933677

Questions -

Q1) On October 1, 2021, the Marketplace, Inc. started a promotional campaign for the sale of its 25-kilo bag of Harvester Dinorado rice with a sales price of P1,200 per bag. The promo applies to all branches of Marketplace, Inc. in Metro Manila. A coupon is attached to each bag and customers can avail of one kilo of washed sugar upon presentation of 2 coupons. Each kilo of washed sugar costs P90 and sells for P125. For the three months ended December 31, 2021, 5,000 bags of rice were sold and Marketplace, Inc. estimates that only 60% of the coupons in the hands of consumers will be presented for redemption. As of the end of the year, 1,000 kilos of washed sugar were redeemed. How much is the unearned revenue from unredeemed premiums on December 31, 2021?

A. P121,212

B. P45,000

C. P60,606

D. P135,000

Q2) Nehemiah Company distributes annual bonuses to its sales manager and two sales supervisors. The company reported P2,000,000 profit for 2021 before bonuses and income tax. The income tax rate is P30%.

How much is the total amount of bonus if each of them is computed at 15% of profit after bonuses and income tax?

A. P190,045

B. P159,696

C. P479,087

D. P570,136

Q3) In an effort to increase sales, BBB Company launched a sales promotional campaign. BBB placed a coupon redeemable for a premium in each package of product sold. Each premium costs P20 and five coupons must be presented by a customer to receive a premium. BBB estimated that only 60% of the coupons issued will be redeemed. The following information is available for the year 2020:

Packages sold- 160,000

Premiums purchased- 12,000

Coupons redeemed- 40,000

What is the estimated liability for premiums to be reported on December 31, 2020?

A. P384,000

B. P160,000

C. P288,000

D. P224,000

Reference no: EM132933677

Questions Cloud

Explain the punch technique : Explain the punch technique and its relation to "burins" and their use.
Find how should movement be treated for accounting purposes : In the absence of a hedge arrangement, if the exchange rate moves against the Australian dollar, how should this movement be treated for accounting purposes?
Describe the organization of the skeletal muscle : Describe the organization of the skeletal muscle. What structures are involved in the sliding filament mechanism? Explain the steps in the sliding filament mec
Calculate the water and solute potential of the soil : In the US Southwest region, irrigation is extensively used in desert areas to grow crops. However, when the water evaporates, it leaves behind solutes such as s
How much is the unearned revenue from unredeemed premiums : As of the end of the year, 1,000 kilos of washed sugar were redeemed. How much is the unearned revenue from unredeemed premiums on December 31, 2021
What do all types at albinism have in common : What do all types at albinism have in common? Use the traits discussed in the reading as evidence.
Explain the role of the transmembrane : Explain the role of the transmembrane and the intracellular protein receptors in cell's signaling (provide an example of each) with some refrences
Create the statement of cash flow for phizer sdn bhd : Create the Statement of Cash Flow for PHIZER Sdn. Bhd. for the year ended 31 December 2020 using Direct Method. Receipt from business contracts 39,860
What is muscle tone : What is muscle tone and how is it maintained? Muscle tone is the degree at which muscles remain partially contracted while at rest.

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