P Computers Inc. sells computers on the installment basis. For the year ended December 31, 2011,the following were reported:Cost of installment salesP525,000Loss on repossessions13,500Fair value of repossessed merchandise112,500Account defaulted180,000Deferred gross profit, December 31108,000How much was collected during the year?

Instalment Sales: It is the sale occurred when buyer make regular payments and revenue and expenses…

Answered: P Computers Inc. sells computers on the…

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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Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $4,500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 12%, $63,000 note payable. Paid the amount due on the note to Locust at the _?- maturity date. ? November 28 December 31 Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 7%, $24,000 note payable. Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _ ? Paid the amount due on the note to Fargo Bank at the maturity date. 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your intermediate…
Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 88, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. Note: Do not round your Intermediate calculations. Use 360 days a…
Concord Hills Ltd. issued five-year bonds with a face value of $180,000 on January 1. The bonds have a coupon interest rate of 5% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 3% when the bonds were issued at a price of 109. Determine the balance in the Bonds Payable account immediately following the first interest payment. Balance in bonds payable account
The choices are 240K, 248K, 256K and 260K
EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $
6. Celeste Company provided the following transactions, among others, for the current year. 1 Sold merchandise to XYZ Company for P500,000, terms 2/10, n/30. 2 the above account to Solid Finance under the following agreement June 1 Commission based on gross amount 5%. Hold back based on gross amount 25%. 9 Granted XYZ Company a credit allowance of P50,000 for damage in the shipment. 11 XYZ Company paid in full its account to Solid Finance. 15. Final settlement was made with Solid Finance. How much was the total amount received from the factoring? а. 500,000 b. 350,000 c. 416,000 d. 375,000
a car shop records its sales in installments. In 1995, installment sales were $2,000. Recording is done for each item sold in installments. at the end of 1995, the total principal of installments sold was $900. total receipts from the 1995 installment sales were $825. The estimated price of the repositioned item is $50 and the balance owed on the reposition is $90. Prepare the journal entry for the above event by: 1. Shows the total gross profit that can be realized until the end of the year (Make it into the journal) 2. record repositioning (make it into a journal) 3. Record realized gross profit (make It into the journal)
The Samsing Music Corp. sells musical instruments on installment. On October 1, 2008, Samsing sold a karaoke costing P15,000 for P24,000. It has been the policy of Samsing to require its customers a down payment of P2,400 for this kind of instrument and the balance to be paid on installment with an annual interest of 12% starting October 31, 2008. Periodic payments are equal in amount and represent interest on the balance of the principal owed between installment periods, the remainder a reduction in the principal balance. The karaoke was repossessed in February 2009, when the customer defaulted after paying a total of P9,600. It was estimated that the karaoke had a depreciated cost of P8,400 when repossessed. The Samsing Music Corp. uses perpetual inventory account and enters the total deferred gross profit at the time of sale. How much is the total realized gross profit from this sale (rounded to the nearest peso)?
Bonnie Corp. sells a machine to a customer for $18,000 and uses the Installment Sales Method to account for the sale. The cost of the goods was $12,400. At the date of sale, Bonnie delivers the machine and receives $4,500, with the remainder being an installment account receivable for $13,500. How much gross profit should Bonnie recognize at the date of delivery? Do not use commas, dollar symbols (e.g. $), units or spaces in your answers. For example, one thousand five hundred and twenty-three dollars should be entered as 1523. If the Canvas system inserts a comma for you, don't worry about it.

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