Holiday ltd manufacturing Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were asfollows:i. 600 caravans was manufactured at a cost of $15,000 each.ii. 500 caravans were sold for $20,000 each.iii. Cash was collected on 475 of the caravans sold.What was the reported profit for the year ended 30 June 2019 if revenue was recognizedwhen cash was received?a. $0b. $5,000,000c. $3,000,000d. $2,500,000e. $2,375,000

As per the information, the revenue is recognized on cash basis. Therefore, the company will record…

Answered: Holidays Ltd manufactures caravans.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 4. Using accrual basis, compute the total income subject to income tax. P1,060,000 P960,000 P1,000,000 P970,000
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ABC Company has the following information for the year ended December 31, 2022: Sales revenue: $1,500,000 Cost of goods sold: $800,000 Operating expenses: $300,000 Interest expense: $50,000 Income tax rate: 30% Calculate the net income for ABC Company for the year ended December 31, 2022.
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