Question

12. Gold Group has an arrangement in which it sells gold coins through Fear Investment Corp.(FIC). Gold Group agrees to reimburse FIC for any advertising costs and pay a 10% commission. During March 2020, Gold Group places $25 million in gold coins with FIC (the cost for the gold coins was $15 million, including shipping costs). FIC incurs $21,000 in advertising costs and sells $20 million of the gold coins to their clients.

a. Prepare the journal entries for FIC for March.

b. Prepare the journal entries for Gold Group for March

Answer 1