Quiz 2 - 1. (TCO D) A company offers a cash rebate of $1 on...

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Unformatted text preview: 1. (TCO D) A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2010. Historically, 10% of customers mail in the rebate form. During 2010, 4,000,000 packages of light bulbs are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2010 financial statements dated December 31? (Points: 4) $400,000; $400,000 $400,000; $260,000 $260,000; $260,000 $140,000; $260,000 2. (TCO D) Mott Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Mott $2.00 each. Mott estimates that 40 percent of the coupons will be redeemed. Data for 2010 and 2011 are as follows: The estimated liability for premiums at December 31, 2011 is (Points: 4) $11,250. $21,250. $22,500. $42,500. 3. (TCO D) On January 1, 2010, Beyer Co. leased a building to Heins Corp. for a ten-year term at an annual rental of $80,000. At inception of the lease, Beyer received $320,000 covering the first an annual rental of $80,000....
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Quiz 2 - 1. (TCO D) A company offers a cash rebate of $1 on...

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