The document provides financial information for three companies, BUCOLIC RURAL Co., INNOCUOUS HARMLESS Co., and THRALL SLAVE Co., that use the installment method of accounting. It includes details of installment sales, costs of sales, cash collections, deferred gross profits, and installment receivables for 2018, 2019, and 2020. Multiple choice questions are then presented related to calculating amounts such as installment sales, cash collections, realized gross profits, and gain/loss on repossession for the companies.
The document provides financial information for three companies, BUCOLIC RURAL Co., INNOCUOUS HARMLESS Co., and THRALL SLAVE Co., that use the installment method of accounting. It includes details of installment sales, costs of sales, cash collections, deferred gross profits, and installment receivables for 2018, 2019, and 2020. Multiple choice questions are then presented related to calculating amounts such as installment sales, cash collections, realized gross profits, and gain/loss on repossession for the companies.
The document provides financial information for three companies, BUCOLIC RURAL Co., INNOCUOUS HARMLESS Co., and THRALL SLAVE Co., that use the installment method of accounting. It includes details of installment sales, costs of sales, cash collections, deferred gross profits, and installment receivables for 2018, 2019, and 2020. Multiple choice questions are then presented related to calculating amounts such as installment sales, cash collections, realized gross profits, and gain/loss on repossession for the companies.
The document provides financial information for three companies, BUCOLIC RURAL Co., INNOCUOUS HARMLESS Co., and THRALL SLAVE Co., that use the installment method of accounting. It includes details of installment sales, costs of sales, cash collections, deferred gross profits, and installment receivables for 2018, 2019, and 2020. Multiple choice questions are then presented related to calculating amounts such as installment sales, cash collections, realized gross profits, and gain/loss on repossession for the companies.
12,800 d. 5,400 1. BUCOLIC RURAL Co. uses the installment method. Information on 6. How much is the total realized gross profit in 2019? BUCOLIC’s transactions during 2018 and 2019 is shown below: a. 123,600 2018 2019 b. 352,000 Installment sales 2,000,000 2,400,000 c. 117,400 Cost of sales 1,200,000 1,320,000 d. 90,000 Gross profit 800,000 1,080,000 7. How much is the profit recognized in 2019? Cash collections from: a. 123,600 2018 sales 800,000 400,000 b. 352,000 2019 sales 960,000 c. 117,400 How much is the total realized gross profit in 2019? d. 90,000 a. 160,000 b. 432,000 c. 592,000 d. 642,000
Please use the following information to answer items 2-4:
INNOCUOUS HARMLESS Co. uses the installment method. On January 1, 2020, INNOCUOUS Co.’s records show the following balances:
Installment sales in 2020 were made at 1/3 top up above cost.
2. How much is the installment sale in 2020?
a. 4,836,000 b. 5,800,000 c. 6,000,000 d. 7,200,000 3. How much is the total cash collections in 2020? a. 5,840,000 b. 1,440,000 c. 3,600,000 d. 5,640,000 4. How much is the total realized gross profit in 2020? a. 984,600 b. 1,241,200 c. 1,520,000 d. 1,421,600
Please use the following to answer items 5-7:
THRALL SLAVE Co. uses the installment method. Information on installment sales in 2018 and 2019 is shown below:
During 2019, THRALL Co. repossessed a property which was sold in 2018 for ₱40,000. Prior to repossession, ₱10,000 were collected from the buyer. The estimated resale price of the repossessed property was ₱34,000 after reconditioning costs of ₱6,000.
