User Account

All Pages

What amount should run report as liability

Assignment Help Accounting Basics
Reference no: EM133016972

Question - Rum Co. offers premiums as part of its sales promotion. Run's past experience indicates only 80% of its sales are redeemed for premiums. Rum Co.'s liability for premiums on December 31, 20x0 was $6,000,000. Run made total sales of $4,000,000 in 20x1 and distributed premiums costing $2,750,000. If all the sales in 20x1 were redeemed, the total cost of premiums would be $2,250,000. What amount should Run report as liability for premiums on December 31, 20x1?

a. 7,250,000

b. 5,500,000

c. 5,050,000

d. 3,250,000

Reference no: EM133016972

Questions Cloud

What does the cash budget tell you : Assuming that the initial cash balance is $100,000 at the beginning of the school year and the cash safety margin is $10,000, what does the cash budget tell you
What total amount of dividends will Tiny and Tim report : Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report
Prepare the liabilities section of the SFP : Sheffield Limited has the following balances as at December 31, 2020: accounts payable and accrued liabilities $21,200, Prepare the liabilities section of SFP
How much is the total accrued liabilities : How much is the total accrued liabilities that should be reported by LISA BP CORPORATION in its statement of financial position as of December 31, 2021
What amount should run report as liability : If all the sales in 20x1 were redeemed, the total cost of premiums would be $2,250,000. What amount should Run report as liability
What is the present value of these payments : You found out that now you are going to receive payments of $6,500 for the next 16 years. What is the present value of these payments
What are the principal features of us health policy : Within the Discussion Board area, write "400 words" that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation
Example for the 3 advertising theory : Example for the 3 advertising theory and why it represent that theory
What is the problem statement for both articles : What is the problem statement for both articles?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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