SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped merchandise to the branch at billed price of P100,000 which was 25% above cost. At the end of the year, the branch reported sales of P160,000, operating expenses of P76,000 and a net income from operations of P12,000. The true net income of the branch was

Q: SM Department Store sells gift certificates, redeemable for store merchandise that expires one year…

A: Unearned revenue on  December 31, 2021 = Unearned revenue at December 31, 2020 + sales for 2021 -…

Q: ABC Company, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: As per revenue recognition principle, all revenues that are related with specific period that should…

Q: A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid…

A: It is the current value of future sum of money to be received at specified interest rate

Q: Hard Company placed orders to DIFFICULT for the year 2021 that will result to the following amount…

A: First Quarter Details: Tax rate = 32% Sales = P13,000,000 Rebate = 10% * 1,100,000 = P110,000 Cost…

Q: Question ：The accountant who posted the sale is now worried that they treated this incorrectly. They…

A:

Q: Prepare a monthly cash budget for the FOUR months from 1st Jan to 30 April 2021. calculations are…

A: Budget can be defined as the estimated statement being prepared at the beginning of the accounting…

Q: Moon Co. sells food blenders. During 2020, Moon made 37,000 blenders at an average cost of $80. It…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: On December 28, 2018, Tristar Communications sold 10 units of its new satellite uplink system to…

A: Cash discount: The merchandisers offer a reduction in sales price on initial sales, to accelerate…

Q: SUGA Company sold 485,000 boxes

A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…

Q: An entity, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: revenue during 2022 Particulars  Amount  Sales from stand alone selling price  7000000 Add:…

Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…

A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…

Q: WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one…

A: Unearned revenues are those revenues which are received in advance by the business but that will be…

Q: The following information relates to Puregold Price Club Inc. (PPCI) for the year 2022. PPCI has a…

A: Gift certificates are a liability to the company. Basically, the company owes the amount on the gift…

Q: William Company operates a customer loyalty program. T entity grants loyalty points for goods…

A: Revenue in another terms is an income.Revenue is generated is through business through profits.

Q: s at December 31, 2020, compute for the following: 1. What is the  Total current assets

A: Account receivables:Account receivables are the current assets of the company that record the amount…

Q: Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based…

A: Sales revenue = Total sales  - Rebate = $110,000 - $110,000*2% = $110,000 - $2,200 = $107,800

Q: Moon Co. sells food blenders. During 2020, Moon made 37,000 blenders at an average cost of $80. It…

A: Accounting equation is the basic principle of accounting which works in the a standardized form of…

Q: On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc.…

A: The question is related to Branch Accounting. The details are given regarding the same.

Q: Harmony Corp. received the following promissory notes from various customers during 2020 in the…

A: Introduction:- Calculation of the total interest income to be recorded by Harmony Corp. during 2020…

Q: On June 3, 2022, CV. Do Fashion consigned 80 clothes, costingRp500,000 each, to PT. Matabulan Tbk.…

A: Consignment means where the goods has been sent to other person called as consignee , to be sold on…

Q: ABC Company, a department store operates a customer loyalty program.The entity grants program…

A: Given data, Sales =P10,000,000 Fair value of products sold =P9,000,000 Fair value of reward points…

Q: what is the balance of the branch account as per home office books

A: Balance in the branch account as per home office books means the balance which the branch owes to…

Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…

A: 1/10, n/30 means, company will given the discount of 1% if the customer will paid the amount within…

Q: Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates…

A: Past experience shows that the 37,600 units are sold to Blossom in the third quarter, hence a rebate…

Q: James Company has an arrangement with with Jorge Company that operates a customer loyalty program.…

A: Customer loyalty programs are accounted for as per IFRS 15. Such a program is used by a company to…

Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…

A: Given, Sales = 10 units @ $25,000 each Term = 1/10, n/30

Q: Presented below is information related to Gonzales Corporation for the month of January 2020.…

A: Date Account Titles and Explanation Debit Credit January  31, 2020 Sales revenue…

Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…

A: Premium expense refers to the expense of the insurance benefit incurred by the candidate as a part…

Q: Crest Corporation established its Poblacion branch in 2019. Merchandise costing P120,000 is shipped…

A: Inventory sold by branch on account = P 100,800 Cash collected on above = P 100,800 × 1/2…

Q: Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods…

A: Journal entry records every transaction by using the double-entry system. Sales as per net basis are…

Q: EM Company, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: Loyalty points Revenue Recognition - Under the same amount allocated from the loyalty rewards is…

Q: During 2020, Gray Company sold 500,000 boxes of cake mix under a new sales promotional program.…

A: Requirement 1: The calculation of premium expenses is as follows: The resultant table is as…

Q: ABC Company runs a department store and grants loyalty awards to its customers. For every P 100…

A: Points earned on ₹ 100,00,000 @ 5 points on every P100= [(100,00,000/100) x 5] = 5,00,000 points.…

Q: 3. Total current assets 4. Expenses to be recognized in the statement of comprehensive income in…

A: Current assets: Resources held by the company that can be converted into cash within period of one…

Q: On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler…

A: VAT means the value added tax which is levied on sale and purchase . Vat paid on purchases is booked…

Q: Crest Corporation established its Poblacion branch in 2019. Merchandise costing P120,000 is shipped…

A: Solution       Home office A/c in Branch books Debit   Credit   Particulars…

Q: and credit) during the year amounted P5,000,000. Ninety percent of these were made on credit. • The…

A: To Calculate the current assets, Accounts receivable and cash and cash equivalents need to be…

Q: What amount of liability must be presented in the statement of financial position relating to…

A: Amount of liability must be presented in the statement of financial position relating to customer…

Q: ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that…

A: The period given to avail cash discount is 10 days.  Thus 10 days is expired on January 10th. Thus…

Q: On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc.…

A: For determining the balance of the branch account as per home office books, we have to prepare…

Q: the branch incurred a loss of P4,000. What is the balance of the branch account as per home office…

A: Balance of branch account includes branch current account and adjustment of profit or loss. In home…

Q: According to Jorge Company:         On December 31, 2020, 28,800 points have been redeemed in…

A: Revenue is an accrual accounting principle used to ascertain particular events under which income is…

Q: The following information relates to Puregold Price Club Inc. (PPCI) for the year 2022. PPCI has a…

A: Unearned Revenue - Unearned Revenue is the revenue against which payment has been received by…

Q: At Dec. 31, 2019. H&M Co. had gift certificates outstanding, which had been sold to customers during…

A: As per IAs 115 Revenue Recognization standard the revenue pertaining to outstanding gifts/coupons is…

Q: ctions during the year: • Sales (cash and credit) during the year amounted P5,000,000. Ninety…

A: There are multiple parts to the question and only first two parts are specified to be solved. Hence,…

Q: MOA sells gift cards that are redeemable only at its stores.  The company's policy is to record the…

A: Outstanding obligations or liabilities are those dues or obligations which are related with current…

Q: Besik Inc. operates a customer loyalty program. The entity grants loyalty points for goods…

A: SOLUTION WORKING NOTE SALES 8500000 POINTS 1500000 TOTAL 1000000.

Q: Ward Company’s usual sales terms are net 60 days, FOB shipping point. Sales, net of returns and…

A: Net sales are calculated by deducting the returns or allowance from the total sales.

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.