User Account

All Pages

Compute for total realized gross profit

Assignment Help Financial Accounting
Reference no: EM133012287

The following selected accounts were taken from the Trial Balance of FRK Company on December 31, 2020.

Accounts Receivable 750,000
Installment Receivable - 2018 150,000
Installment Receivable - 2019 450,000
Installment Receivable - 2020
2,700,000
Beginning Inventory. 525,000
Purchases. 3,900,000
Freight-in. 30,000
Loss on Repossession. 240,000
Repossed Inventory at NRV. 150,000
Cash Sales. 900,000
Credit Sales. 1,800,000
Installment Sales. 4,460,000
Deferred Gross Profit - 2018. 222,000
Deferred Gross Profit - 2019. 393,600
Operating Expenses. 150,000
Cost of Installment Sales. 2,787,500

Additional Information:

  • Gross Profit rates for 2018 and 2019 installment sales were 30% and 32%.

The entry for the reposed goods made by FRK Company were as follows:

Repossessed Inventory 150,000

Loss on Repossession. 240,000

Installment Receivable - 2018 180,000

Installment Receivable - 2019 210,000

  • Merchandise on hand (new and repossessed) at the end of 2020 was P282,000.

REQUIREMENTS:

Problem 1: COMPUTE FOR

1.1. Total Realized Gross Profit in 2020

1.2. Net Income 2020

 

Reference no: EM133012287

Questions Cloud

What cost flow assumption method does kroger use for food : What cost flow assumption method does Kroger use for food? Does this match the actual flow of goods through the stores? What is the explanation for this?
What features included with a bond prospectus : What are some of the features that could be included with a bond prospectus that may have an impact on the yield of a new bond issue?
Compute the beginning value of fixed assets : Fedor Customs reports the Operating cashflows of $400, ending fixed asset value of $300, Compute the beginning value of fixed assets.
Explain the indirect ownership interests : Explain the indirect ownership interests and who has the indirect interests? Describe the situation that end up with the indirect ownership interests.
Compute for total realized gross profit : COMPUTE FOR Total Realized Gross Profit in 2020. Gross Profit rates for 2018 and 2019 installment sales were 30% and 32%. Accounts Receivable 750,000
Which fraudulent financial reporting may be achieved : As an external auditor, what are the ways in which fraudulent financial reporting may be achieved by the management or those charged with governance?
What other factors would impact the auditors judgment : What other factors or influences, if any, the removal of AASB 1031 would impact the auditors' judgment on materiality? Explain your answer.
How do the standards and guidelines of materiality influence : How do the standards and guidelines of "materiality" influence the auditors' judgment on materiality level and material misstatements? Provide examples.
Identify the type of audit opinion required : Identify the type of audit opinion required. You are the auditor of Trumps Weapons Ltd, a large consolidated entity with major operations in the Middle East.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a cash budget for december and january

What would the company's loan requirements be at the end of December in this case? (Hint: The calculations required to answer this part are minimal.)

  Advise client on the measurement method of the asset

Advise your client on the measurement method of the asset held under finance leaseand the monthly payments from operating leases.

  What is the dirty cash price of the bond

What is the dirty cash price of this bond? Consider a corporate bond with a $1000 face value, 7.50% annual coupon with semiannual coupon payments, 7 years.

  Using straight-line amortization

On January 1, 2014, Victor Corporation sold a $1,460,000, 10 percent bond issue (8 percent market rate). The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in five years. Record the interest payment on June 30..

  What is the most you would be willing to pay

If your required return on this stock is 10.53 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now

  Prepare an income statement and cash flow statement

Prepare an Income statement and Cash Flow Statement and determine the Present Worth and Internal Rate of Return of the proposal.

  Potential threats to auditor independence and recommend

Imagine that you work for an audit firm and the firm selected you to assess its auditor independence and the potential threats to the firm. Determine at least two (2) potential threats to auditor independence and recommend one (1) strategy for the fi..

  How much would salmah have at the end of five year

Salmah deposit RM100 with an interest of 5% per year for 5 years. How much would salmah have at the end of 5 year? Provide the example.

  What total expense on sale of receivables does recognize

What total expense/loss on sale of receivables does he recognize on the date of sale? Enter a positive number for a debit and a negative number

  What is dollar amount of purchase of suits

Beginning inventory for September is expected to be 4,000 suits. What is dollar amount of the purchase of suits? Each suit has a cost of $75.

  What is the dollar amount for sales revenue in the flexible

Actual sales price was $58 per unit. What is the dollar amount for sales revenue in the flexible budget column of the Flexible Budget Performance Report?

  What remuneration is subject to the newfoundland

ABC Company has employees, What remuneration is subject to the Newfoundland and Labrador Health and Post-Secondary Education tax?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd