User Account

All Pages

What amount should be reported as premium expense

Assignment Help Accounting Basics
Reference no: EM133149952

Question - Love Company included one coupon in each package sold. A premium is offered to the costumer who send in 10 coupons.

 

2021

2022

Number of package sold

500,000

800,000

Number of premiums purchased at P40 each

30,000

60,000

Number of premium distributed

20,000

50,000

Number of premiums to be distributed next period

5,000

3,000

Required -

1. What amount should be reported as premium expense for 2021?

2. What amount should be reported as estimated premium liability on December 31, 2021?

3. What amount should be reported as premium expense in 2022?

4. What amount should be reported as estimated premium liability on December 31, 2022?

Reference no: EM133149952

Questions Cloud

AFIN8067 International Financial Management Assignment : AFIN8067 International Financial Management Assignment Help and Solution, Macquarie University - Assessment Writing Service
What is the monthly labour cost of the company : Labour is paid £8 per unit of product A produced and £6 per unit of product B. What is the monthly labour cost of the company
What would be the budgeted production units be in april : Company policy is to have a finished goods inventory at the end of each month equal to 25% of the next month's sales. What would be the budgeted production unit
What was the amount of net capital spending : For the past year, Galaxy Interiors had depreciation of $2,419, beginning total assets of $23,616, What was the amount of net capital spending
What amount should be reported as premium expense : Love Company included one coupon in each package sold. A premium is offered to the costumer who send in 10 coupons. What amount be reported as premium expense
Identify what the SFIA levels applicable to these roles : Identify what the SFIA levels applicable to these roles and What Career path did you identify for yourself (Introduction)
Federal income tax sense : Which party wins and which party loses, in a Federal income tax sense?
What is the company wacc : A stock has paid $6 of annual dividends. The dividends are expected to grow at a rate of 4% per year, What is the company WACC
What is antoine tax basis in the stock received in exchange : The corporation assumed a liability of $23 on the property transferred. What is Antoine's tax basis in the stock received in the exchange

Reviews

Write a Review

Accounting Basics Questions & Answers

  Define opportunity cost

Define opportunity cost and explain why opportunity costs are not usually recorded. Explain the impact of Winter Company's selection

  Newco inc had current earnings and profits of 150000 when

newco inc. had current earnings and profits of 150000 when it made a nonliquidating distribution to an individual

  What is the net pay for gary

What is the net pay for Gary? Gary Dittman, an employee of Hopkins Company, has gross earnings for the month of October of $6,000.

  Calculate their liability for Medicare Levy

Will derived taxable income of $36,000 and his wife Tina derived taxable income of $22,000. Calculate their liability for Medicare Levy

  What are your key investment goals

Assume that you are 35 years old, are married with two young children, are renting a condo, and have an annual income of $90,000.

  Compare and contrast job-order and process costing systems

Compare and contrast job-order and process costing systems. How can events in a job-order costing system affect financial statements

  The accumulated depreciation''trucks account,

Soon after December 31, 2010 the auditor requested a depreciation schedule for trucks of the Jarrett Trucking Company, showing the additions, retirements, depreciation, and other data affecting the income of the company in the four-year period 2007 t..

  Find the price of the bond

Ajax wants to issue a 10 year-zero coupon bond. The yield on 10-year T-bonds is 2.5%. Find the price of the bond

  Calculate the discounted payback period of the project

Company X has to consider the IBL project that can increase the value of the company overall. Calculate the discounted payback period of the project

  How much additional cash will raviv have

If the corporate tax rate is 38%, how much additional cash will Raviv have at the end of the year net of corporate taxes

  Do you think the investor will prevail

Now assume that instead of applying for a bank loan, Given the violations I discussed in my solution to the week 1 homework, do you think the investor will prevail?

  Performed at heartville general hospital

The number of heart surgeries performed at heartville general hospital has increased steadily over the past several years. The hospital's administration is seeking the best method to forecast the demand for such surgeries in year 6.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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