Determine the entries to record the transactions

Assignment Help Financial Accounting
Reference no: EM132928119

EEE Company sells new automobiles. A new Escapade costing P700,000 was sold on October 1, 2020 for P1,060,000. A used Toyota Revo was accepted as down payment and an allowance of P300,000 was accepted on the trade in. The balance is payable in 36 equal monthly installments of P25,500 starting November 1, 2020. The interest rate is 10%. EEE anticipates selling price on reconditioned automobile of P350,000 after reconditioning it for P50,000. Selling costs equal to 5% of selling price is also anticipated. The gross profit for reconditioned automobile is expected to be 20%.

Problem 1: Determine the following:

a. Revenue to be recognized in 2020
b. Balance of Trade in Item Account
c. Net income to be recognized in 2020
d. Entries to record the transactions in 2020

Reference no: EM132928119

Questions Cloud

Compliance with labor laws : In Chapter 20, your textbook discusses different Labor Laws. In Health Information Management, it is important to understand local, state, and federal regulatio
Performance ratings of employees in the organisation : What factors affect the performance ratings of employees in the organisation?
Assess employer branding techniques : In this you are required to identify and assess employer branding techniques and online external recruiting best practices.
What is the company pretax cost of debt : The company also has a bond outstanding with a coupon rate of 8.2 percent and semiannual payments. What is the company pretax cost of debt
Determine the entries to record the transactions : Determine the Entries to record the transactions. EEE Company sells new automobiles. A new Escapade costing P700,000 was sold on October 1, 2020.
Assignment on organizational behavior : You are working as a manager of a financial planning office where you require your employees to have a presence on social media. One of your financial advisors
Calculate each of efficiency variance fixed manufacturing : Variable manufacturing overheads R19 135. Calculate each of the Efficiency variance fixed manufacturing overheads variances.
What is the amount of net credit sales for the period : A company has a receivables turnover of 10 times. The average receivables timing the period are $500,000. What is the amount of net credit sales for the period
Analysis of the concept of employee engagement : An analysis of the concept of employee engagement and the meaning, principal dimensions and components of 'employee engagement', with a brief comparison with ot

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the approximate net present value

Byron Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $102,500. The equipment will have an initial cost of $442,000 and have a 5 year life.  what is..

  Provide an effective method may use to negotiate timeframe

Provide an effective method may use to negotiate an acceptable timeframe with the credit representatives to implement these new software processes.

  What do you notice about the payoff profile

Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $95 per barrel. She simultaneously sells a put option on 50,000 barrels of oilwith the same exercise price of $95 per barrel. Consider her gains and loss..

  Estimate stimulate cultural tolerance and acceptance

Outline how you needed to compromise and be mindful of people's cultural differences as you manage employees and consider strategies

  Which is a benefit of robert having a subsidiary purchases

Which is a benefit of Robert having a subsidiary purchases ledger for his food and beverage supply company? Calculating whether a client should be issued credit

  Which is example of a non-recurring fair value measurement

What term describes the market with the greatest volume and level of activity for an asset or liability? Which is example of non-recurring fair value measuremt

  Why do equity holders care more about roe than roa

If a bank finds its ROE is too low because it has too much bank capital, what can it do to raise its ROE? Why do equity holders care more about ROE than ROA?

  What is the difference between cash and cash equivalent

What is the difference between cash, cash equivalent, crypto-assets, digital currencies and crypto currencies? What Approaches to account cryptocurrencies?

  What will the depreciation charge be for the year

company policy is to depreciate buildings at 20% per annum on a straight-line basis. What will the depreciation charge be for the year ending 30 June 2020?

  Advise that our system reflects a balance

discrepancy as our system does not provide a comparison between our records and your client's records. Our system simply processes transactions recorded on our system and the balance outstanding reflects the total of individual outstanding transac..

  What the amount to be reported in fluck income statement

On November 1, 2020, Fluck Corp. What the amount to be reported in Fluck's 2020 income statement as a result of this investment is?

  Compute the face value of the bill

Identify the principal motives for holding cash and near-cash assets. Explain the purpose of each motive? Which alternative should Bild-up select?

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!

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