Help me answer this thank u 3. Wizards Company sold 4,100,000 boxes of applepie mix. Each box contains one coupon, in which 10coupons, with P5 entitles the customer to a bakingpan. Wizards company pays P18 per pan and P2 forhandling and shipping. Wizards company estimatesthat 70% of the coupons will be redeemed, eventhough only 2,150,000 coupons had proceededduring 2023.The liability for unredeemed coupons on itsDecember 31, 2023 is Orlando Company has a contract with its CEO topay him a bonus during each of the years 2021 –2024. The profit before deductions for bonus andincome taxes were P14,500,000 in 2021; P18,000,000in 2022; P22,500,000 in 2023; and P25,000,000 in 2024.The bonus of 25% is deductible for tax purposes ineach year. The tax rate is 20%.The 2022 bonus is based on profit after bonus butbefore taxes. Compute the amount of the bonus for2022.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Sebastian Company includes one coupon in each box of hotcake mix it sells. A spoon isoffered as a premium to customers who presents 10 coupons and a cash remittance ofP10.00.Cost of distributing the premium is P5.00. Experience indicates that only 30% of thecoupons will be redeemed 2020 2021Boxes of hotcake mix sold 2,000,000 2,500,000Number of spoons purchased at P50 each 50,000 80,000Coupons redeemed 400,000 700,000Required:a. Compute for the premium expense for the year 2020b. Compute the estimated premium liability on December 31, 2020c. Compute for the premium expense for the year 2021d. Compute for the estimated premium liability on December 31, 2021
(To record the sales) (To record premiums redeemed) (To record a liability for premiums) ||
During 2020, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each box contained one coupon, which entitled the customer to a baking pan upon remittance of P40. The entity paid P50 per pan and P5 for handling and shipping. The entity estimated that 80% of the coupons will be redeemed, even though only P300,000 coupons had been processed during 2020. 1. What amount should be reported as premium expense for P2020? 2. What amount should be reported as liability for unredeemed coupons on December 31, 2020?
Please show your solution in good accounting form In 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that costs the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. a. Compute for the liability for the unredeemed coupons. b. Compute for the premium expense for the year.
During 2020, Gray Company sold 500,000 boxes of cake mix under a new sales promotional program. Each box contained one coupon, which entitled the customer to a baking pan upon remittance of P40. The entity paid P50 per pan and P5 for handling and shipping. The entity estimated that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2020. 2a. What amount should be reported as premium expense for 2020? a. P 2,000,000 b. P 4,500,000 c. P 6,000,000 d. P 7,500,000 2b. What amount should be reported as liability for unredeemed coupons on December 31, 2020? a. 1,000,000 b. 1,500,000 c. 3,000,000 d. 5,000,000
Phoenix Company, places a coupon in each box of its product. Customers may send in ten coupons and P3.00, and the company will send them a romantic pillow. Sufficient pillows were purchased at P5.40 a piece. During 2019, 1,260,000 boxes were sold. It was estimated that a total of 5% of the coupons will be redeemed. In 2019, 18,000 coupons were redeemed. How much is the liability for premiums outstanding as of December 31, 2019? 43,200 24,300 15,120 45,200 10,800
During 2020, STU Company sold 500,000 boxes of brownies mix under a new sales promotional program. Each box contains one coupon, which when submitted with P40 entitles the customer a roll of baking sheet paper . ABC pays P50 per pan and P5 for handling and shipping. ABC estimates that 80% of the coupon will be redeemed, even though only 300,000 coupons have been processed during the year. What amount should ABC report as liability for unredeemed coupons as of December 31, 2020?
In December 2021, Belarmino Company began including one coupon in each package of candy that is sells and offering a toy in exchange of P5 and five coupons. The toys cost P8 each. Eventually, 60% of the coupons will be redeemed. During December, Belarmino Company sold 110,000 packages of candy and no coupons were redeemed. Belarmino Company should report an estimated liability for coupons of Group of answer choices 105,600 198,000 39,600 528,000
16. ABC Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, plus P4, customers receive a leash. The leashes cost ABC P5.00 each and the cost for distribution it is P2 each. ABC estimates that 40 percent of the coupons will be redeemed. Data for 2022 and 2023, respectively, are as follows: Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 22,000 Coupons redeemed 120,000 150,000 To record the redemption, which of the following can’t be found in the entry? a. Dr. Premium expense of 75,000 b. Dr. Premium Expense of 45,000 c. Dr. Cash of 30,000 net d. Cr. Leash Inventory of 75,000
Sterling Co. includes one coupon in each bag of dog food it sells. In return for 4 coupons, customers receive a dog toy that the company purchases for $1.50 each. Sterling's experience indicates that 60 percent of the coupons will be redeemed. In 2025, 150,000 bags of dog food were sold, 18,000 toys were purchased, and 60,000 coupons were redeemed. In 2026, 180,000 bags of dog food were sold, 24,000 toys were purchased, and 90,000 coupons were redeemed. Determine the premium expense to be reported in the income statement and the premium liability on the balance sheet for 2025 and 2026.
38. During the current year, Responsibility Company inserted in each package sold a coupon offering P300 off the purchase price of a particular brand of product when the coupon is presented to retailers. The retailers are reimbursed for the face amount of coupons plus 10% for handling. Previous experience indicates that 30% of coupons will be redeemed. During the current year, Responsibility issued coupons with face amount of P10,000,000 and total payments to retailers amounted to P2,000,000. What is the amount of coupon liability at the end of the year?
During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with P 16, entitles the customer to a banking pan. Maine Co. pay P 20 per pan and P 2 handling and shipping. Maine estimates that 80% of the coupons will be redeemed, even though only 30,000 coupons had been processed during 2020. What amount should Maine report as a liability for unredeemed coupons at Dec. 31, 2020? * A.P 1,000,000 B.P 400,000 C.P 600,000 D.P 300,000

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The 2022 bonus is based on profit after bonus but before taxes. Compute the amount of the bonus for 2022.