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question problem 13 9 only need answers for question marks all answers listed are 4277359

Question

Problem 13-9 – *****ONLY NEED ANSWERS FOR QUESTION MARKS – ALL ANSWERS LISTED ARE CORRECT*****

Sandhill Company offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.80. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.55. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. (All purchases and sales are for cash.)

Part 1: Prepare the journal entries that should be made in 2017 and 2018 to record the transactions related to the premium plan of the Sandhill Company.

Part 2: Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2017 and 2018.

 

2017

2018

MP3 Codes Purchased

300,000

396,000

Candy Bars Sold

2,924,600

2,542,100

Wrappers Redeemed

1,440,000

1,800,000

2017 Wrappers Expected to be Redeemed in 2018

348,000

 

2018 Wrappers Expected to be Redeemed in 2019

 

420,000

2017 MP3 codes purchased 300,000 396,000 Candy bars sold 2,924,600 2,542,100 1,440,000 1,800,000 Wrappers redeemed 2017 wrappers expected to be redeemed in 2018 348,000 2018 wrappers expected to be redeemed in 2019 420,000

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