Prepare the Income statement of Uncle Nenens

Assignment Help Accounting Basics
Reference no: EM132669961

Question - Uncle Nenens Company includes one coupon in each package of cereal it sells. A towel is offered as a premium to customers who send in 10 coupons and a cash remittance of 10 pesos. The cost to distribute each towel is 5 each. Data for the premium offer are:

 

First Year

Second Year

Packages of cereal sold at 30 each

875000

1,400,000

# of towels purchased at 40 per towel

52,500

105,000

# of towels distributed as premiums

35,000

87,500

# of towels to be distributed as premium Next period

8,750

5,250

The company's general & administrative expense for year 1 are 10% and 15% of total sales respectively, while the total distribution and selling expense is 12% and 16% of total sales respectively. The entity's interest on loans amounted to 120,000 and the current year's tax rate is 30%.

Required - Prepare the Income statement of Uncle Nenens for the 1st year and 2nd year. In addition, state the amount of estimated liability for premiums to be presented in the statement of financial position at the end of the 2nd year.

Reference no: EM132669961

Questions Cloud

What are the interests of the oppressors : What do you think of this view on education as ensuring compliance to the existing order? Do you see validity in Freire's theory?
Compare the cash flow statements of the two companies : Question - Compare the cash flow statements of the two companies. Comment on the trend of cash generated by operating activities
Find how much carrying amount of the receivable on december : The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the receivable on December 31, 20x1?
How does the writer exhibit social responsibility : Write a research essay of about 1,500 words in length in which you construct an argument drawing on one (or two) of the short stories we have read by Irving.
Prepare the Income statement of Uncle Nenens : The company's general & administrative expense for year 1 are 10% and 15% of total sales respectively, Prepare the Income statement of Uncle Nenens
How much is the carrying amount of receivable on december : How much is the carrying amount of the receivable on December 31, 20x1? On January 1, 20x1, ABC Co. sold inventory costing P 1,800,000
What lou ann and christopher atamian highlighted : What Lou Ann and Christopher Atamian highlighted on Sunday of September 27, 2020 in a live zoom event that focused on the stories of Armenians in the early 20th
How much is the initial measurement of the receivable : How much is the initial measurement of the receivable? On January 1, 20x1, ABC Co. sold inventory costing P 1,800,000 with a list price of P2,200,000
Describe the media contents : How is the growth of bacteria interpreted (what are some of the differential features observed) b) Which bacteria are grown on those media?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Acc403 auditing assignment - difference in substantive tests

ACC403 Auditing assignment help and assessment help, Strayer University - Discuss the key differences between substantive tests of transactions and substantive.

  Analyzing the information contained in the given video

Analyzing the information contained in the video, identify at least four internal controls effective in mitigating employee theft and / or fraud.

  What are the most challenging concepts for to understand

What are the most challenging concepts for you to understand? Have you found any supplemental resources or websites that have helped you to better comprehend

  Compute the after tax net loss reported by Maine

Maine Company reported a pretax operating loss of $150,000 for financial reporting. Compute the after tax net loss reported by Maine

  Solve the net cash flow from financing activities

Calculate the net cash flow from Operating, Investing & Financing activities using the Indirect Method.Decrease in income taxes payable $36,700

  Feller the sole owner of a small hardware business has been

independent auditfeller the sole owner of a small hardware business has been told that the business should have its

  What information about its pension plan must a publicly

What information about its pension plan must a publicly traded company disclose in its interim financial statements?

  Calculate the cost per equivalent unit of material

Assume 9,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. Calculate the cost per equivalent unit of material

  Calculate the dollar amount of each type of service

Calculate the dollar amount of each type of service that the company must provide in order to break even

  Prepare an income statement for the year using variable cost

Compute the cost of a single unit of product under both the absorption costing and variable costing approaches

  The following selected transactions relate to investment

Indicate any amounts that Ornamental Insulation would report in its 2011 balance sheet and income statement as a result of these investments.

  Industries and different measurement conventions

Write a 1050-word paper discussing how differences in the industries and different measurement conventions (IASB and FASB) affect presentations, and how the elements of the four financial statements are related.

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