Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Johnson and Johnson (J&J) is a public company with a calendar year end. J&J manufactures toothpaste that is ultimately purchased and used by consumers. The supply chain consists of the following:
J&J launches a new toothpaste, Shiny Teeth, on September 1, 2012. In connection with this launch, J&J developed a comprehensive marketing campaign. Part of the campaign involves releasing approximately 500,000 coupons in Sunday newspapers in locations in which the new toothpaste will be sold. When a consumer redeems the coupon upon purchasing the product from a retailer, the price charged is reduced by $1. This retailer sends the coupon to a clearinghouse. J&J reimburses the retailer for the discount provided to the customer. J&J discontinues the coupons for this product on October 1, 2012. The coupons expire on October 1, 2013. J&J has not offered coupons on toothpaste before, nor have they offered coupons with a one-year expiration period. They have, however, offered coupons with a six-month expiration date on other products. These coupons had a 1.5 percent redemption rate. J&J estimates that approximately 2 percent of the toothpaste coupons will be redeemed by customers prior to the expiration date. However, J&J does not have any data on the redemption rate for coupons offered on toothpaste. J&J has sold and recognized revenue for over $2,000,000 of Shiny Teeth into the supply chain by September 30, 2012. J&J is considering how it should account for the Shiny Teeth coupon drop that took place on October 1, 2012. In doing so, J&J asks for your help. Prepare a memo addressing the following questions. Base your analysis of these questions on the relevant authoritative literature and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Condification in your discussions. Citations are not required for journal entries. 1. What are the accounting issue(s) and the relevant components of the authoritative literature? 1) Revenue recognition a) When and How 2. When should J&J recognize the effects of the Shiny Teeth coupon drop on its financial statements? 3. What is the dollar amount of the effect of Shiny Teeth coupon drop on J&J's financial statements? 4. What would constitute "sufficient evidence" to support J&J's expected redemption rate of 2 percent? 5. What are the accounting implications if J&J's estimated redemption rate changes to 1.5 percent at a later point in time? 6. How should the effects of the Shiny Teeth coupon drop be reflected in the income statement? 7. What are the necessary journal entries?
Wynn, Inc. has contract to construct a large hotel for $12,000,000. The contract was signed on the month January 2, 2010 and it was expected that the hotel would be complete on the month of December 31, 2013. Under these situations, what amount of ..
What would be Altoona's finished-goods inventory cost on Dec 31 under the variable costing method?
Prepare journal entries for the following selected transactions related to this company's stock during the current year:
-All sales are on credit. -Customer amounts on account are collected 50% in the month sale and 50% in the following month. -Cost of goods sold is 35% of sales. -Farley purchases and pays for merchandise 60% in the month of acquisition and 40% in th..
Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase.
record the following transactions both budgetary and actual entries in the general ledger of a cpf of santiago county.
Thirty flasks, 10 full, 10 half empty and 10 entirely empty, are to be divided among 3 sons so that flasks and content should be shared equally.
Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.
Robin incurred expenses during 2008 of $1,000,000. The percentage depletion rate is 22 percent. Determine Robin's depletion deduction for 2008.
the obama corporation has 120000 shares outstanding with a current market price of 8.10 per share. the company needs to
Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:
A supplies account has a balance of $810 at the beginning of the year and was debited during the year for $1,950, If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year woul..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd