Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Sheridan Candy Company balance sheet and income statement at the end of 2020 and 2021. Balance Sheet Income Statement Account Name Account Name Class Class 2020 2020

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the
Sheridan Candy Company balance sheet and income statement at the end of 2020 and 2021.
Balance Sheet
Income Statement
Account Name
Account Name
Class
Class
2020
2020
Transcribed Image Text:Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Sheridan Candy Company balance sheet and income statement at the end of 2020 and 2021. Balance Sheet Income Statement Account Name Account Name Class Class 2020 2020
Sheridan Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together
with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 to mail each mug. The results of the
premium plan for the years 2020 and 2021 are as follows (assume all purchases and sales are for cash):
Coffee mugs purchased
Candy bars sold
Wrappers redeemed
2020 wrappers expected to be redeemed in 2021
2021 wrappers expected to be redeemed in 2022
2020
2021
710,000
800,000
5,700,000 6,980,000
2,800,000
4.160,000
2,000,000
2,700,000
Transcribed Image Text:Sheridan Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 to mail each mug. The results of the premium plan for the years 2020 and 2021 are as follows (assume all purchases and sales are for cash): Coffee mugs purchased Candy bars sold Wrappers redeemed 2020 wrappers expected to be redeemed in 2021 2021 wrappers expected to be redeemed in 2022 2020 2021 710,000 800,000 5,700,000 6,980,000 2,800,000 4.160,000 2,000,000 2,700,000
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