User Account

All Pages

Installment sales computation and entries periodic inventory

Assignment Help Accounting Basics
Reference no: EM131119778

Installment-Sales Computation and Entries-Periodic Inventory Mantle Inc. sells merchandise for cash and also on the installment plan. Entries to record cost of goods sold are made at the end of each year. Repossessions of merchandise (sold in 2010) were made in 2011 and were recorded correctly as follows. 

Deferred Gross Profit, 2010 7,200

Repossessed Merchandise 8,000

Loss on Repossession 2,800

Installment Accounts Receivable, 2010 18,000

Part of this repossessed merchandise was sold for cash during 2011, and the sale was recorded by a debit to Cash and a credit to Sales. The inventory of repossessed merchandise on hand December 31, 2011, is $4,000; of new

merchandise, $127,400. There was no repossessed merchandise on hand January 1, 2011. Collections on accounts receivable during 2011 were:

Installment Accounts Receivable, 2010 $80,000

Installment Accounts Receivable, 2011 50,000

The cost of the merchandise sold under the installment plan during 2011 was $111,600. The rate of gross profit on 2010 and on 2011 installment sales can be computed from the information given.

Instructions 

(a) From the trial balance and other information given above, prepare adjusting and closing entries as of December 31, 2011.

(b) Prepare an income statement for the year ended December 31, 2011. Include only the realized gross profit in the incomestatement.  

Reference no: EM131119778

Questions Cloud

Rate of increase proportional : If the population of a country doubles in 50 years, how many years will it tripple assuming that the rate of increase is proportional to the number of inhabitants? Show your work please.
Should mechanical ventilation be instituted : An elderly man with end-stage emphysema presents to the emergency room awake and alert and complaining of shortness of breath. An evaluation reveals that he has pneumonia. Should mechanical ventilation be instituted
Compare and contrast the court system : Select one state and describe the court system structure within that state. Compare and contrast the court system of the state you selected with the federal court system.
What are the nationalities of the international companies : What are the nationalities of the following international companies? What do you conclude about whether the sites were tailored to you according to your locality and language?
Installment sales computation and entries periodic inventory : Prepare an income statement for the year ended December 31, 2011. Include only the realized gross profit in the incomestatement.
Discuss the various aspects of each type of conflict : Discuss the various aspects of each type of conflict. Provide specific examples for each type of conflict as it might appear within a criminal justice organization
Compare gulf controls with the average firm in the industry : Compare Gulf Controls with the average firm in the industry. What is the source of the major differences between the Gulf and the industry averageratios?
Should the patient be intubated and cpr commenced : Mr. S is a 73-year-old man, with a history of severe coronary artery disease, peripheral vascular disease, and stroke. He suffers from right hemiplegia and mild expressive aphasia. Should the patient be intubated and CPR commenced
Identify one type of conflict within the organization : Identify one type of conflict within the organization and another type of conflict with an offender that a criminal justice professional in this role might experience as a part of his or her normal day-to-day routine

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the company predetermined overhead rate

Hemingway, Inc. applies factory overhead based on direct labor costs. The company incurred the following costs during 2011: direct materials costs, $650,000; direct labor costs, $3 million; and factory overhead costs applied, $1,800,000.

  Henry mintzberg 1973 depicts these dimensions in ten roles

henry mintzberg 1973 depicts these dimensions in ten roles common to the work of all managers. what are these ten roles

  Prepare the operating activities section of the statement

the income statement of rodriquez company is shown below.rodriquez company income statement for the year ended december

  Wainwright corporation had the following activities in 2010

Purchase of treasury stock $72,000 6. Purchase of available-for-sale securities $59,000 Compute the amount Wainwright should report as net cash provided (used) by investing activities in its statement of cash flows.

  Comptac inc which is headquartered in san francisco

comptac inc. which is headquartered in san francisco california is one of the leading software manufacturers in the

  Salta company installs a manufacturing machine in its

salta company installs a manufacturing machine in its factory at the beginning of the year at a cost of 87000. the

  What method might be used in the accounts

What method(s) might be used in the accounts to record a loss due to a price decline in the inventories? Discuss

  Atlas steel company produces three grades of steel high

atlas steel company produces three grades of steel high good and regular grade. each of these products grades has high

  Orlando auto accessories produces pickup truck bumpers that

orlando auto accessories produces pickup truck bumpers that it sells on a wholesale basis to new car retailers. the

  In recent months there have been many news stories in the

in recent months there have been many news stories in the press about executive compensation with stock options. this

  Evaluate prepaid expense and unearned revenue

Amounts paid on June 30 for a 1-year insurance policy, Professional fees earned but not billed as of June 30

  What is the yield today for 2-year treasury securities

One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities?

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