af0436242c68097745e6d03e5fdd6397_34c2d48fec5f505bf96dad9cd2d9d31a

Af0436242c68097745e6d03e5fdd6397_34c2d48fec5f505bf96dad9cd2d9d31a

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1 Stuttgart 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. a Record the purchase of the stain sprayers assuming cash was paid. b Calculate the premium expense for the current year. c Record the entire premium expense for the year, both redemption and accrual. d
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2 Dresden Company issued a 6% per year semi-annual interest 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.
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