1Stuttgart Manufacturing Company requires 10 coupons from its soap powder, Uberschocken, to be redeemed along with $1.00 for a stain remover sprayer. Each box contains one coupon. This year 1,000,000 boxes of soap powder were sold at $5.25 per box, again each containing a coupon. They purchased 75,000 stain sprayers for cash at $2.10 each during the current year. They estimate that 70% of the coupons will be returned from sales this year. Only 550,000 coupons actually were returned in the current year.Dr.Cr.aRecord the purchase of the stain sprayers assuming cash was paid.bCalculate the premium expense for the current year.cRecord the entire premium expense for the year, both redemption and accrual.d
2Dresden Company issued a 6% per year semi-annualinterest bond to yield 5% per year. The bond is a 10 year bond with a face value of $1,000,000 and pays interest every January 1 and July 1. In addition, bond issue costs were $45,000. The bond is callable after one year at 108. Dresden uses the effective interest method of amortization. The bond was issued January 1, 2015.Determine the proceeds from the bond issue using the tables provided in Chapter 6.Record the issue of the bond and the bond issue costs.