UNIVERSITY OF THE EAST Caloocan Campus College of Business Adminstration Department of Accounting Quiz no 4 1st Semester AY 10 11 AC 408 Advanced

anced Accounting Part 1

1. Bengot Enterprise. which began operation on January 1, 2002, sells items for cash and installment
basis. The company uses the installment method. The following information were made available: Total sales P1,600,000 Cost of installment sales 500,000 Collections on installment sales 200,000 Realized gross profit 100,000 The balance of the deferred gross profit account on December 31 should be: Elon co. began operations in January 1, 2002 and appropriately uses the installment method of accounting. Installment sales amounted to P600,000. Cost of these installment sales is P360,000. During the year, collection amounted to P225,000 2. The balance of the deferred gross profit account at December 31 2002 should be You are given the following data for 2003: 1/1/03 12/31/03 Installment receivable, 2001 35,000 10,000 Installment receivable, 2002 60,000 20,000 Unrealized gross profit, 2001 10,500 Unrealized gross profit, 2002 15,000 3. The gross profit rate for 2001 is ______________ 4. Realized gross profit for 2003 is _______________ 5. Total unrealized gross profit for 2003 as adjusted should be ________________ Acer Inc. started operation at the beginning of 2002, selling home appliances on installment basis. Data for 2002 and 2003 are as follows: 2002 2003 Installment sales P600,000 P750,000 Cost of Installment sales 420,000 450,000 2002 Inst. Accts receivable, end 285,000 22,500 2003 Inst. Accts receivable, end -300,000

6. The total unrealized gross profit for 2003 was 7. Total realized gross profit for 2003 was
Using the following data, compute for the balance for the deferred gross profit. Installment sales P400,000 Gross margin based on cost 66 2/3% Collections made 80,000 Queenie Enterprises uses the installment method of accounting. You are given the following information: Gross margin on cost 66 2/3% Unrealized gross profit 192,000 Cash collections including down payments 360,000

8. What was the total amount of sales on installment basis? 9. realized gross profit as adjusted should be:

UNIVERSITY OF THE EAST Caloocan Campus College of Business Adminstration Department of Accounting Quiz no 4 1st Semester AY 10 11 AC 408 Advanced Accounting Part 1

Light drops started operations in 2000. For 2000 and 2001, the following data were available: 2000 2001 Installment sales P2,400,000 P3,000,000 Costs of installment sales 1,140,000 2,100,000 Collections on 2000 sales 1,260,000 900,000 Collections of 2001 sales 1,800,000

10. The balance of the unrealized gross profit at the end of the year was 11. How much is the realized gross profit for 2001? 12. Installment sales is P500,000, collections P50,000 and realized gross profit is P22,000. How much is
the cost of the installment sales?

13. Installment account receivable end is P4,500,000. deferred gross profit before adjustment is
P3,150,000. Gross profit on cost is 33 1/3%. How much is the realized gross profit? Use the following data for questions 14 to 16: Total sales cost of inst sales gross profit rate collections on installment sales operating expenses 2,500,000 1,500,000 25% on cost( for regular and installment sales) 900,000 55,000

14. How much is the installment sales 15. How much is the realized gross profit 16. If the company wants a net income of 450,000, how much must be collected on installment sales?

Using the following tables, answer the questions that follows: CASE 1 CASE 2 Installment sales 500,000 900,000 Cost of installment sales ? ? deferred gross profit, beg 150,000 300,000 collections ? 540,000 deferred gross profit, end 82,500 ? installment. Accounts. Receivable, end 275,000 ?

CASE 3 ? ? 420,000 ? 157,500 450,000

CASE 4 ? ? 450,000 975,000 ? 825,000

17. Compute for the collections on installment sales in case 1 18. Compute for the deferred gross profit, end for case 2 19. Compute for the Installment sales in case 3 20. Compute for the cost of installment sales in case 4