Info icon This preview shows pages 1–3. Sign up to view the full content.

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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

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.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern