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Kane Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $1.80; in addition it costs $1.20 to mail each mug. The results of the premium plan for the years 2014 & 2015 are as follows (assume all purchases and sales are for cash): Coffee mugs purchased Candy bars sold wrappers redeemed 2014 wrappers expected to be redeemed in 2015 2015 wrappers expected to be redeemed in 2016 Prepare the general journal entries that should be made in 2014 & 2015 related to the above activity and projections Kane Candy. Indicate the account names, amounts, and classifications (current or long-term) related to the premium plan that would appear on the Kane Company balance sheets and income statement at the end of 2014&2015. Kane Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $1.80; in addition it costs $1.20 to mail each mug. The results of the premium plan for the years 2014 & 2015 are as follows (assume all purchases and sales are for cash): Coffee mugs purchased Candy bars sold wrappers redeemed 2014 wrappers expected to be redeemed in 2015 2015 wrappers expected to be redeemed in 2016 Prepare the general journal entries that should be made in 2014 & 2015 related to the above activity and projections Kane Candy. Indicate the account names, amounts, and classifications (current or long-term) related to the premium plan that would appear on the Kane Company balance sheets and income statement at the end of 2014&2015

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