Problem 12 The following information was derived from the 2016 accounting records of SHARK Co.: SHARK’s Central Warehouse SHARK’s Goods Held by Consignees Beginning inventory Purchases Freight-in Transportation to consignees Freight-out Ending inventory P55,000 240,000 5,000 P6,000 30,000 2,500 4,000 10,000 What is SHARK’s 2016 cost of sales? Problem 14 Bulldog Manufacturing Corp. consigned ten refrigerators to Poodles Sales Co. These refrigerators had a cost of P180 each. Freight on the shipment was paid by Bulldog in the amount of P120. Poodle Sales Co. submitted an account sales stating that it had sold six refrigerators and remitted the P1,365 balance due Bulldog after the following deductions from the selling price of the refrigerators: Commission 15% of selling price Marketing expenses P90 Delivery and installation of items sold P60 Cartage cost paid upon receipt of consignment P15 The consignee sold the 6 refrigerators for a total of ____. The commission earned on the sale of the 6 refrigerators by Central Sales Co. was ____. The consignor’s net profit from the sale of the consigned goods was ____. Problem 4 Norwin Co. shipped inventory on consignment to Viyan Co. that cost P20,000. Viyan paid P500 for advertising that was reimbursable from Norwin. At the end of the year, 70% of the inventory was sold for P30,000. The agreement states that a commission of 20% will be provided to Viyan for all sales. What amount of net inventory on consignment remains on the balance sheet for the first year for Norwin? Problem 14 The Japan Homes Corporation started operations on January 1, 2017 selling home appliance and furniture sets both for cash and on instalment basis. Data on the instalment sales operations of the company gathered for the years ending December 31, 2017 and 2018 were as follows: 2017 2018 Installment Sales Cost of Installment Sales Cash collected on instalment sales 2017 installment contracts 2018 installment sales P1,200,000 P720,000 P630,000 P1,500,000 P1,050,000 P450,000 P900,000 On January 6, 2018 an instalment sale in 2017 was defaulted and the merchandise was repossessed. The fair market value of the merchandise after reconditioning costs amounted to P15,000. There is a 10% normal profit based on estimated resale value, the corporation incurred P3,000 disposal costs and P5,000 reconditioning cost. Related instalment receivable balance on January 6, 2018 was P17,000. The operating expenses incurred in 2017 and 2018 amounted to P50,000 and P100,000, respectively. What is the gross profit rate 2017 and 2018, respectively? What is the Deferred Gross Profit as of 2018 form 2017 sales? How much is the amount of estimated resale value? What is the amount to be debited as the value of Repossessed Merchandise at a time of repossession? How much is the gain/(loss) on repossession? How much is the RGP after gain or (loss) on repossession in December 31, 2017? How much is the RGP after gain or (loss) on repossession in December 31, 2018? Problem 15 SUN CELL Company sold Cellphones on instalment basis on July 1, 2018. The Unit cost to the company was P388,800, but the instalment selling price was set at P550,800. Terms of payment included the acceptance of used Cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded in Cellphones with the balance to be paid in ten monthly instalments due at the end of each month commencing the month after the month of sale. It would require P8,100 to recondition the used Cellphones so that it could be resold for P162,000. A 15% gross profit was usual from the sale of used How much is the fair value traded in merchandise? How much is the under/ (over) allowance in trade in? What is the Gross Profit rate? How much is the monthly payment? How much is the total Realized Gross Profit in 2018? Problem 16 AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019, How much is the earned portion for the month ended January 31, 2019? How much is the earned portion for the month ended December 31, 2019? How much is the unearned portion for the month ended January 31, 2019? How much is the unearned portion for the month ended December 31, 2019? How much is the provision for unearned premium on December 31, 2019? Problem 17 On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
Problem 12
The following information was derived from the 2016 accounting records of SHARK Co.:
|
SHARK’s Central Warehouse |
SHARK’s Goods Held by Consignees |
|
|
Beginning inventory Purchases Freight-in Transportation to consignees Freight-out Ending inventory |
P55,000 240,000 5,000 |
P6,000 30,000 2,500 4,000 10,000 |
What is SHARK’s 2016 cost of sales?
Problem 14
Bulldog Manufacturing Corp. consigned ten refrigerators to Poodles Sales Co. These refrigerators had a cost of P180 each. Freight on the shipment was paid by Bulldog in the amount of P120.
Poodle Sales Co. submitted an account sales stating that it had sold six refrigerators and remitted the P1,365 balance due Bulldog after the following deductions from the selling price of the refrigerators:
Commission 15% of selling price
Marketing expenses P90
Delivery and installation of items sold P60
Cartage cost paid upon receipt of consignment P15
The consignee sold the 6 refrigerators for a total of ____.
The commission earned on the sale of the 6 refrigerators by Central Sales Co. was ____.
The consignor’s net profit from the sale of the consigned goods was ____.
Problem 4
Norwin Co. shipped inventory on consignment to Viyan Co. that cost P20,000. Viyan paid P500 for advertising that was reimbursable from Norwin. At the end of the year, 70% of the inventory was sold for P30,000. The agreement states that a commission of 20% will be provided to Viyan for all sales.
What amount of net inventory on consignment remains on the balance sheet for the first year for Norwin?
Problem 14
The Japan Homes Corporation started operations on January 1, 2017 selling home appliance and furniture sets both for cash and on instalment basis. Data on the instalment sales operations of the company gathered for the years ending December 31, 2017 and 2018 were as follows:
|
2017 |
2018 |
|
|
Installment Sales Cost of Installment Sales Cash collected on instalment sales 2017 installment contracts 2018 installment sales |
P1,200,000 P720,000 P630,000 |
P1,500,000 P1,050,000 P450,000 P900,000 |
On January 6, 2018 an instalment sale in 2017 was defaulted and the merchandise was repossessed. The fair market value of the merchandise after reconditioning costs amounted to P15,000. There is a 10% normal profit based on estimated resale value, the corporation incurred P3,000 disposal costs and P5,000 reconditioning cost. Related instalment receivable balance on January 6, 2018 was P17,000. The operating expenses incurred in 2017 and 2018 amounted to P50,000 and P100,000, respectively.
What is the gross profit rate 2017 and 2018, respectively?
What is the Deferred Gross Profit as of 2018 form 2017 sales?
How much is the amount of estimated resale value?
What is the amount to be debited as the value of Repossessed Merchandise at a time of repossession?
How much is the gain/(loss) on repossession?
How much is the RGP after gain or (loss) on repossession in December 31, 2017?
How much is the RGP after gain or (loss) on repossession in December 31, 2018?
Problem 15
SUN CELL Company sold Cellphones on instalment basis on July 1, 2018. The Unit cost to the company was P388,800, but the instalment selling price was set at P550,800. Terms of payment included the acceptance of used Cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded in Cellphones with the balance to be paid in ten monthly instalments due at the end of each month commencing the month after the month of sale. It would require P8,100 to recondition the used Cellphones so that it could be resold for P162,000. A 15% gross profit was usual from the sale of used How much is the fair value traded in merchandise?
How much is the under/ (over) allowance in trade in?
What is the Gross Profit rate?
How much is the monthly payment?
How much is the total Realized Gross Profit in 2018?
Problem 16
AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019,
How much is the earned portion for the month ended January 31, 2019?
How much is the earned portion for the month ended December 31, 2019?
How much is the unearned portion for the month ended January 31, 2019?
How much is the unearned portion for the month ended December 31, 2019?
How much is the provision for unearned premium on December 31, 2019?
Problem 17
On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%.
How much is the amount due from ceding company (book of reinsurer)?
How much is the amount of commission income recognized by cedant?
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