BDO and OSD formed a joint operation to buy and sell certain merchandise. Their capitalcontributions and profit and loss ratios are presented below:ContributionsCashP & L RatioMerchandiseBDOP 5,000P 8,00050%OSD6,00050%A summary of the joint operation activities is as follows:Purchases of merchandise by OSDExpenses paid by OSD:P 4,000P 400Taxes and licensesFreight on merchandise contributed by BDODelivery expense on merchandise soldSales (all of the merchandise contributed and purchasedby OSD and one-half of those contributed by300200BDO) – selling price14,000The joint operation is terminated. Compute the share of OSD in income?

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Answered: BDO and OSD formed a joint operation to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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HC uses installment sales method in revenue recognition. The following information is provided in the records of Hale: 20X1 20X2 20X3 Sales P1,500,000 P1,250,000 P2,350,000 Cost of Sales 900,000 780,000 1,057,500 Cash Collections From 20x1 Sales 50,000 70,000 670,000 From 20x2 Sales 230,000 365,000 From 20x3 Sales 124,000 REQUIRED: Compute for the following: 1. Adjusted deferred gross profit balance in 20x1 2. Realized gross profit in 20x1 3. Adjusted deferred gross profit balance in 20x2
AU.S. company's foreign subsidiary had these amounts in local currency units (LCU) in 20X2: Cost of goods sold Beginning inventory Ending inventory O $1,237,700 O $1,100,000 LCU 1,000,000 O $1,250,000 O $1,083,200 LCU 80,000 The average exchange rate during 20X2 was $1.10=LCU 1. The beginning inventory was acquired when the exchange rate was $1.00=LCU 1. Ending inventory was acquired when the exchange rate was $1.18=LCU 1. The exchange rate at December 31, 20X2, was $1.25 = LCU 1. Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S. dollar income statement? LCU 110,000 IC
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total January 1 March 11 SFr 1 $ 0.73 SFr 1$ 0.74 SFr. 1 = $0.77 SFr 1- $ 0.80 SFr 1 = $0.75 Debit SFr 8,100 21,000 6,200 27,500 107,000 72,500 11,600 31,500 15,800 SFr 301,200 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,200 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 3. Equipment is depreciated by the straight-line method with a 10-year life…
ABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight collect. If ABC uses the net method, the amount of accounts payable to be credited is: a. 10,000 X 10% X 2% b. 10,000 X 90% X 98% c. 10,000 X 90% X 98% minus 200 d. 10,000 X 90% X 98% plus 200
he questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: applies to th Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense E6-17 (Algo) Part 1 Required: 1. Prepare a multistep income statement for external reporting purposes. MYSTERY INCORPORATED Income Statement
Use the following information to answer this question: Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts received Inventory Windswept, Incorporated 2021 Income Statement ($ in millions) Total Net fixed assets Total assets 2020 $ 270 1, 090 1, 760 $ 3, 120 3, 460 $ 6, 580 2021 $ 290 $ 9,950 7,900 365 990 1, 650 $ 1,685 98 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) $ 1,587 333 $ 1,254 Accounts payable Long-term debt Common stock Retained earnings $ 2,930 4, 040 $ 6,970 Total liabilities & equity 2020 $ 1,540 1, 060 3, 340 640 $ 6, 580 2021 $ 1,812 1, 248 3, 020 890 $ 6,970 Windswept, Incorporated, has 540 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
Following information is available for ABC Corporations. Calculate the amount of cash that is paid for merchandise for the current year. Cost of goods sold Merchandise inventory, prior year-end Merchandise inventory, current year-end Accounts payable, prior year-and Accounts payable, current year-and $115,790 $664,840 $671,635 $667,020 $655,700 $105,560 $115,790 $98,765 $99,855
PROBLEM 4: The records of ZZZ Company reveal the following information: A. Goods sold on an installment basis to Luxembourg, Inc., possession of the goods is transferred to Hatred, Inc., P750,000. B Goods sold to Madrid Company for which ZZZ has signed an agreement to repurchasethe goods sold at a set price that covers all costs related to the inventory, P680,000. C. Goods received from YYY Company for which an agreement was signed requiringZZZ to replace such goods in the near future, P580,000. C. Goods purchased from Male, Inc., P430,000. Billing was received although delivery was delayed per request of ZZZ. The goods purchased were segregated and ready for delivery on demand. D. Goods purchased from Managua on a lay away sale agreement, P550,000. The goods were not yet delivered until after ZZZ makes the final payment on the purchase price. ZZZ made total payments of P50,000 during the year. How much is included by ZZZ as part of inventory?

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