Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 214 views

    Quiz Installment Sales 2

    Uploaded by

    MARJORIE BAMBALAN
    The document provides financial information for GLISK Corporation for the year ending December 31, 20x10 including balances for assets, liabilities, equity, revenues and expenses. It also provides installment sale information for 20x8 and 20x9 to calculate deferred gross profit amounts. Additional questions are included about equipment sales, interest revenue calculations, and installment method reporting for INHA Ventures and The Gums Company.

    Copyright:

    © All Rights Reserved
    Download as ODT, PDF, TXT or read online from Scribd

    Quiz Installment Sales 2

    Uploaded by

    MARJORIE BAMBALAN
    214 views1 page
    The document provides financial information for GLISK Corporation for the year ending December 31, 20x10 including balances for assets, liabilities, equity, revenues and expenses. It also provides installment sale information for 20x8 and 20x9 to calculate deferred gross profit amounts. Additional questions are included about equipment sales, interest revenue calculations, and installment method reporting for INHA Ventures and The Gums Company.

    Original Description:

    Quiz on installment sales

    Copyright

    © © All Rights Reserved

    Available Formats

    ODT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides financial information for GLISK Corporation for the year ending December 31, 20x10 including balances for assets, liabilities, equity, revenues and expenses. It also provides installment sale information for 20x8 and 20x9 to calculate deferred gross profit amounts. Additional questions are included about equipment sales, interest revenue calculations, and installment method reporting for INHA Ventures and The Gums Company.

    Copyright:

    © All Rights Reserved
    Download as ODT, PDF, TXT or read online from Scribd
    Download as odt, pdf, or txt
    214 views1 page

    Quiz Installment Sales 2

    Uploaded by

    MARJORIE BAMBALAN
    The document provides financial information for GLISK Corporation for the year ending December 31, 20x10 including balances for assets, liabilities, equity, revenues and expenses. It also provides installment sale information for 20x8 and 20x9 to calculate deferred gross profit amounts. Additional questions are included about equipment sales, interest revenue calculations, and installment method reporting for INHA Ventures and The Gums Company.

    Copyright:

    © All Rights Reserved
    Download as ODT, PDF, TXT or read online from Scribd
    Download as odt, pdf, or txt
    of 1

    1.

    The following information is taken from the unadjusted trial balance as of December 31, 20x10 for GLISK Corporation:
    Cash P 15,000
    Accounts receivable 60,000
    Installment receivable – 20x8 15,000
    Installment receivable – 20x9 45,000
    Installment receivable – 20x10 240,000
    Merchandise inventory 52,600
    Repossessed goods 15,000
    Purchases 493,000
    Operating expenses 76,300
    Repossession loss 24,000
    Cash sales P 90,000
    Charged sales 180,000
    Installment sales 446,400
    Other revenue 8,840
    Deferred gross profit – 20x8 22,200
    Deferred gross profit – 20x9 39,360
    The rates of gross profit on installment sales were: 30% in 20x8 and 32% in 20x9. During 20x10, the installment sales price
    exceeded the cash price be 24%, while the charge sales price exceeded the cash sales price by 20%. The repossession in 2000
    related to 20x8 account balances of P14,000 and 20x9 account balances of P25,000. The inventory of new and repossessed
    merchandise at December 31, 20x10 amounted to P77,000.

    1. Total realized gross profit on installment sales in 20x10 amounted to:

    2. The repossession loss was:

    3. The net income for 20x10 was:

    2. On September 30, 20x10, HONEY Corp. sold equipment for P300,000, with a down payment of 20% and the balance in
    twelve equal monthly installments, starting on October 31, 2000, plus interest at 18% per annum. The equipment cost
    P225,000.

    1. Assuming use of “long-end” method, interest revenue in 20x10 would be:

    2. Assuming use of “short-end” method, interest revenue in 20x10 would be:

    3. INHA Ventures began operations in 20x10. All sales are on credit, with customers giving notes receivable. The statements
    of income for the years 20x10 and 20x11 included, among others, the following:
    20x10 20x11
    Revenue – principal collections P480,000 P750,000
    Revenue – interest collections 54,000 82,500
    Cost of installment sales 900,000 924,000
    Operating expenses 112,500 157,500
    The balances due on the customers’ promissory notes, at the end of 2000 and 2001, were as follows:
    20x10 20x11
    Notes receivable, 20x10 P810,000 P540,000
    Notes receivable, 20x111 ---- 900,000
    Discount on 20x10 notes receivable 90,000 66,000
    Discount on 20x11 notes receivable 84,000

    The gross profit realized in 20x10 was:


    1. The gross profit realized in 20x11 on 2000 sales was:
    2. The gross profit realized in 20x11 on 20x11 sales was:

    4. The Gums Company uses the installment method of reporting for accounting purposes. The following data were obtained for
    the years20x8 to 20x10.
    20x8 20x9 20x10
    Installment sales P600,000 P810,000 P990,000
    Cost of installment sales 420,000 486,000 643,500
    Gross profit P180,000 P324,000 P346,500
    Installment contracts receivable balances, December 31:
    20x8 20x9 20x10
    20x8 sales P360,000 P270,000 P120,000
    20x9 sales 600,000 390,000
    20x10 sales 780,000
    In 20x10, one of the customers defaulted in his payment and the company repossessed the merchandise with an estimated
    market value of P30,000. The sales were in 20x8 and the unpaid balance on the date of repossession was P45,000. Compute for
    20x10 (1) The gain or (loss) on repossession; (2) Total realized gross profit, and (3) The deferred gross profit

    You might also like