Ewan

 Ewan Exploration Paper

CHAPTER being unfaithful

MULTIPLE CHOICE ANSWERS AND SOLUTIONS

9-1: d

Deferred gross income, Dec. 23 (before adjustmentP1, 050, 000 Less: Deferred gross revenue, Dec. 31 (after adjustment)

Installment accounts receivable, December. 31P1, 500, 000

Major profit rate____Г· 25%__375, 1000

Realized major profit, 2008PВ В 675, 1000

OR

Sequel Sales (P1, 050, 000 Г· 25%)P4, 200, 1000

Less: Installment account receivable, Dec. 31__1, 500, 00

CollectionP2, 700, 000

Major profit rate___X 25%

Realized gross revenue, 2008PВ В 675, 000

9-2: a

2006 3 years ago 2008 Deferred gross income, before adjustment P7, 230 PВ В В 60, 750 PВ В 120, a hundred and fifty Deferred gross profit, end

2006 (6, 000 Times 35%) 2, 100

2007 (61, 500 X 33%) 20, 295 2008 (195, 000 By 30%) 49, 500 Recognized gross profit, December thirty-one, 2008P5, 135 PВ В В 40, 455 PВ В В 61, 600

(Total – P107, 235)

9-3: c

Deferred gross profit equilibrium, endPВ В 202, 000

Break down by Low profit price based on sales (25% Г· 125%)____Г· 20% Installment Accounts Receivable, endP1, 010, 500

Collection___440, 000

Installment SalesP1, 450, 500

9-4: w

SalesP1, 000, 000

Expense of installment sales__700, 000

Deferred gross profitPВ В 300, 000

Less: Deferred gross income, end

Installment accounts receivables, 12/31

(1, 000, 000-400, 000) PВ В 600, 000

Gross profit charge (300, 500 Г· you, 000, 000) ___X 30%__180, 000 Recognized gross profitPВ В 120, 000

Working expenses___80, 500

Operating income40, 000

Fascination and financing charge__100, 500

Net incomePВ В 140, 000

9-5: a

Market value of reclaimed merchandisePВ 30, 00

(before reconditioning cost)

Fewer: unrecovered cost

Unpaid harmony (80, 000-30, 000) PВ В В 50, 000 Significantly less: Deferred major profit (50, 000X20%) ___10, 000__40, 1000 Loss in repossession(PВ 10, 000)

9-6: a

Installment salesP1, 000, 500

Less: collection on installment sales__200, 000

Installment accounts receivables, 12/31/0800, 000

Low profit rate (500, 000 Г· one particular, 000, 000) __X fifty percent Deferred low profit, 12/31/08PВ В 400, 000

OR

Deferred major profit (1, 000, 000-500, 000) P500, 000 Significantly less: Realized Low Profit (200, 000 Back button 50%) _100, 000 Deferred gross earnings, 12/31/08 P400, 000

9-7: d

Reasonable value of repossessed merchandise P120, 500 Less: unrecovered cost

Past due balance PВ В 200, 000 Significantly less: Deferred gross profit (200, 000 By 32. 5%) ___65, 000_135, 000 Damage on repossession (PВ 15, 000) 9-8: w

Realized gross profit:

Selections:

Downpayment PВ В В 35, 000

Installment received (205, 000-200, 000) ___5, 500

Total forty five, 000 Low Profit Charge (150, 1000 Г· 240, 000) _X 62. 5% Realized major profit PВ В В 25, 000

Gain (loss) in repossession:

Appraised value of repossessed goods P165, 1000 Less: unrecovered cost

past due balance PВ В 200, 000 less: deferred low profit (200, 000 Back button 62. 5%) __125, 1000 __75, 500 Gain in repossession PВ 90, 000 9-9: n

Sch. 1

Applying Applying Balance

To to of

DateCollection Interest principalprincipal

Apr-1P7, 000. 00

Apr-1750 750. 00 six, 250. 00 May-1625 125. 00 500. 005, 750. 00

Jun-1625 115. 00 510. 005, 240. 00

Jul-1625 104. 80...

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