b. Compute for the balance of the installment receivable at thea. Compute for the realized gross profit in each of the years 20x11. Ring Co. uses the "installment sales method." Information oPROBLEM 4: FOR CLASSROOM DISCUSSIONInstallment sales methodRing Co.'s sales and collections is as follows:20x1us20x21,000,000700,0001,300,000Installment sales845,000Cost of salesCollections:500,000* 300,000- from 20x1 sales650,000- from 20x2 salesRequirements:and 20x2.b. Compute for the balance of the installment receivable at t.end of each of the years 20x1 and 20x2.c. Compute for the deferred gross profit at the end of each of theyears 20x1 and 20x2.

The installment sales method is a method where profit is recognised when the cash is received.

PRÒ 1. Ring Co. uses the "installment sales method." Information o - Compute for the realized gross profit in each of the years 20x1 Installment sales method on 20x1 20x2 1,300,000 1,000,000 Installment sales Cost of sales Collections: - from 20x1 sales - from 20x2 sales 700,000 845,000 500,000 * 300,000 650,000 Requirements: b. Compute for the balance of the installment receivable at the end of each of the years 20x1 and 20x2. . Compute for the deferred gross profit at the end of each of the and 20x2.

PRÒ 1. Ring Co. uses the "installment sales method." Information o - Compute for the realized gross profit in each of the years 20x1 Installment sales method on 20x1 20x2 1,300,000 1,000,000 Installment sales Cost of sales Collections: - from 20x1 sales - from 20x2 sales 700,000 845,000 500,000 * 300,000 650,000 Requirements: b. Compute for the balance of the installment receivable at the end of each of the years 20x1 and 20x2. . Compute for the deferred gross profit at the end of each of the and 20x2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

25 A company purchases a piece of machinery by issuing a $300,000 five-year note payable. The stated and effective annual interest rates are both 6%, and monthly installment payments are $5,800. What is the balance in the Notes Payable account after two payments have been made? $288,400 O $291,379 $295,700 $300,000 NEXT > BOOKMARK
Closing Costs Credit report Loan origination fee Attorney and notary Documentation stamp Processing fee $300.00 1% $500.00 0.50% $400.00 A. $225,650 B. $255,485 C. $221,000 D. $225,515 What is the total mortgage for a $260,000 purchase, a 15% down payment, and the closing costs shown in the table?
ences Rental Costs. Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $ 7,520 152 1,050 Rental cost Buying cost Total Cost $ 10,600 ($ 9,606 is interest) 2,170 Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. 1,920 4,500 994 3,000
If beginning and ending interest receivable were P16,000 and P5,000, respectively. Total interest income for the period amounted to P52,000, how much would be the amount of interest collections for the period?a. P31,000 c. P52,000b. P41,000 d. P63,000
A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43
Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00
7. Present Value of a Perpetuity Determine the present value of each of the following perpetuities. Part Annual CF Interest Rate A $34,000 B $90,000 C $6,000 D $60,000 8% 10% 6% 5%
Indicate the tramsaction prie for this situation and when revenue will be recognized Groupo sels goods to Magnus for $500,000 payment due in two installments first installment payable in 18 months and the second paymend due 6 months later. The present value of the future payments is $464,000 O $500.000 recognized at the point of sale O $464.000 reciognized at the point of sale and recognized interest revenue over the payment period O $500.000 recognize $250,000 in 18 months and $250,000 recognized 6 months later $500.000 recognize $464 000 revenue and $36.000 of interest revenue
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per $1,000" answer to 5 decimal places and other answers to the nearest cent. Selling price of home $ Down payment 75,000 $ Principal (loan) 4,000 $ 71,000.00 Rate of interest 5.5 % Years 30 Payment per $1,000 Monthly Martege Payment r
Prepare a duration table under the following assumptions a. $100,000 fully amortizing loan b. Annual payments c. 10-year amortization d. 7% stated rate e. 9% yield