CAPADA, Johanna Raissa C.

10 Polk Company
a Selling price of main product (300,000 x ₱ 30) 9,000,000.00
Selling price of premium {(300,000 x 30%) / 20 x ₱ 40} 180,000.00
Total selling price 9,180,000.00

Allocation of the transaction price:

To the main product {(9000 / 9180) x ₱ 9,000,000} 8,823,529.00
To the premium {(180 / 9180) x ₱ 9,000,0000} 176,471.00

Allocated transaction price to the premium 176,471.00

Multiplt by (500/4500) 0.11
Unearned revenue for unredeemed premiums 19,608.00

b Allocated transaction price to the premium 176,471.00

Multiply by (4000 / 4500) 0.89
Additional sales recognized 156,863.00

12 Van Department Store

a Allocation of original consideration received:
Sales revenue (₱ 5,000,000 x 98%)
Liability for customer loyalty awards (₱ 5,000,000 x 2%)

Liability for customer loyalty awards

Multiply by (25,000 / 90,000)
Revenue recognized in 2019 as a result of redemption

Total accumulated revenue (25,000 + 35,000) / 95,000 x ₱ 100,000

Revenue recognized in 2019 as a result of redemption
Revenue recognized in 2020 as a result of redemption

b Liability for customer loyalty awards

Revenue recognized as a result of redemption
Liability on customer liability awards, December 31, 2019

Liability for customer loyalty awards, December 31, 2019

Revenue recognized as a result of redemption
Liability on customer liability awards, December 31, 2020

14 Buchanan Company
Journal Entry:
Particulars

Cash
Unearned revenue from gift certificates outstanding
To record gift certificates sold.

Unearned revenue from gift certificates outstanding

Sales
To record gift certificates redeemed.

Unearned revenue from gift certificates outstanding

Revenue from forfeited gift certificates
To record revenue recognized from forfeited gift certificates.

Cost of goods sold

Inventory
(₱ 2,750,000 x 75%)
 11 TAYLOR COMPANY

a Selling price of main product (140,000 x ₱ 500)

Selling price of premium {(70,000 / 5) x (₱ 150 - ₱ 50)
Total selling price

Allocation of the transaction price:

To the main product {(70000 / 71400) x ₱ 70,000,000
To the premium {(1400 / 71400) x ₱ 70,000,0000}
Total

Allocated transaction price to the premium

Multiplt by (40/70)
Total of redeemed coupons

Allocated transaction price to the premium

Redeemed coupons
Provision for unredeemed coupons for 2019

4,900,000.00 b Allocated transaction price to the main product

100,000.00 Redeemed coupons
Total
100,000.00 Cash {(40,000 / 5) x ₱ 50
0.28 Revenue recognized for 2019
27,778.00
c Selling price of main product (200,000 x ₱ 500)
63,158.00 Selling price of premium {28,000 x (₱ 150 - ₱ 50)}
-27,778.00 Total selling price
35,380.00
Allocation of the transaction price:
100,000.00 To the main product {(1000 / 1028) x ₱ 100,000,000}
-27,778.00 To the premium {(28 / 1028) x ₱ 100,000,0000}
72,222.00 Total

72,222.00 Allocated transaction price to the premium

-35,380.00 Multiplt by (12/28)
36,842.00 Total of redeemed coupons

Allocated transaction price to the premium

Redeemed coupons
 Debit Credit Provision for unredeemed coupons for 2020

3,000,000.00 Allocated transaction price to the main product

3,000,000.00 Redeemed coupons
Total
Cash 12,000 x ₱ 50
2,750,000.00 Total
2,750,000.00 Unredeemed coupons for 2019
Revenue recognized for 2020

150,000.00
150,000.00

2,062,500.00
2,062,500.00
product (140,000 x ₱ 500) 70,000,000.00
ium {(70,000 / 5) x (₱ 150 - ₱ 50)} 1,400,000.00
71,400,000.00

nsaction price:
{(70000 / 71400) x ₱ 70,000,000} 68,627,451.00
00 / 71400) x ₱ 70,000,0000} 1,372,549.00
70,000,000.00

n price to the premium 1,372,549.00

0.57
784,314.00

n price to the premium 1,372,549.00

-784,314.00
emed coupons for 2019 588,235.00

n price to the main product 68,627,451.00

784,314.00
69,411,765.00
400,000.00
69,811,765.00

product (200,000 x ₱ 500) 100,000,000.00

ium {28,000 x (₱ 150 - ₱ 50)} 2,800,000.00
102,800,000.00

nsaction price:
{(1000 / 1028) x ₱ 100,000,000} 97,276,265.00
/ 1028) x ₱ 100,000,0000} 2,723,735.00
100,000,000.00

n price to the premium 2,723,735.00

0.43
1,167,315.00

n price to the premium 2,723,735.00

-1,167,315.00
emed coupons for 2020 1,556,420.00

n price to the main product 97,276,265.00

1,167,315.00
98,443,580.00
600,000.00
99,043,580.00
588,235.00
99,631,815.00