The Jack Lalanne Company manufactures a high protein energy barsold exclusively at major
league baseball games. To increase sales they offer an officialmajor league baseball as a
promotion when a customer remits 4 sports bar wrappers along with$2.00.
The sports bars are sold at major league games for $3.00 each. Itcosts the company $1.60 for
each baseball, and an additional $.80 to process and ship each ballto customers. Results of the
promotion during the 2017 baseball season (including the WorldSeries) are shown below, all
transactions are for cash:
Baseballs Purchased………………….….……… 17,000
Sports Bars sold…………………………………… 93,500
Wrappers redeemed in 2017……….…..… 59,400
2017 season wrappers expected
to be redeemed in early 2018………….… 7,800
Required:
a. Prepare all journal entries that should be made in the 2017season related to the
protein energy bar sales and premium promotion of the Jack LalanneCompany.
b. Indicate the account names, their balances, and theirclassification related to the
premium promotion that should appear on the balance sheet as ofDecember 31, 2017,
and the income statement for the year ending December 31, 2017.
