Name : Nabila Ika Sari

ID Number : 008201900007

Assignment Intermediate Accounting 2

Entry
Period 1 Period 2
debite credit debite credit
a Cash (340,000/100=3,400 x $5) ; 17,000 42,400
. (850,000/100=8,500 x $5)
Premium liability 6,600
Premium expense 10,200 18,900
Inventory of premium [3400x($2.00 + $6.00) ; 27,200 68,000
8500x($2.00 + $6.00)
(to record coupons redeemed)

b Premium expense *6,600 1,260

Premium liability 6,600 1,260
(to record estimated liability)
*[(700,000 x 0.80) – 340,000] : 100 x $3.00=6,600