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6) No Doubt Company includes 1 coupon in each box of soap
powder that it packs, and 10 coupons are redeemable for a premium
(a kitchen utensil). In 2014, No Doubt Company purchased 8,840
premiums at 70 cents each and sold 122,500 boxes of soap powder at
$3.40 per box; 50,000 coupons were presented for redemption in
2014. It is estimated that 60% of the coupons will eventually be
presented for redemption.
Prepare all the entries that would be made relative to sales of soap
powder and to the premium plan in 2014. (Round answers to 0
decimal places, e.g. 5,275. If no entry is required, select "No Entry"
for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when amount is entered. Do not
indent manually.)
Account Titles and Explanation
Debit Credit
Make all the journal entries necessary to record the transactions
above using appropriate dates. (If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when amount is entered. Do
not indent manually.)
Date Account Titles and Explanation
Debit Credit
7) Edwardson Corporation’s year-end is December 31. Assuming
that no adjusting entries relative to the transactions above have been
recorded, prepare any adjusting journal entries concerning interest
that are necessary to present fair financial statements at December
31. Assume straight-line amortization of discounts. (If no entry is
required, select "No Entry" for the account titles and enter 0 for the
amounts. Credit account titles are automatically indented when
amount is entered. Do not indent manually. Record journal entries in
the order presented in the problem.)
8) The presentation of current and non-current liabilities in the
statement of financial position (balance sheet):