eer 8 QUIZ NO.7 4 poe NAME oe ee ee RE YEAR & SECTION non Cena '- Mahangin Company which began operation in 2002 uses the installment method of Sccounting. The following information is given to you for 2002: Total cash collections 712,425 own payments 250,000, Deferred Gross Profit, Dee. 31 465,520 Gross Profit Ratio 35% What is the total amount of sales revenue for 2002? @.P2,292,482.14 b.P2,217,428.57 ¢. P2,721,428.75 ——d. P2,042,482.14. 2. The following information were gathered from the records of Mikaela's Appliance Store: ~all installment sales require 20% down payment + installment sales for: 2001 PS45,000 | 2002 P785,000 | 2003 P968,000 + mark-up on cost is 35% ~ collections after down payment are 40% during year of sales, 35% one year after and 25% two years afier The realized gross profit for 2001 is a. P109,357 6OP73474——_. P99,190 4. P114,063 The Unrealized Gross Profit for the 2002 installment sales at the end of 2002 is a. P97,689 b.PI31,880 ©. PIAI,112 d. P114,063 The installment accounts receivable at the end of 2003 is a, P652,722 (0° P621,640 ¢. P602,991 d, P685,358 be) ‘The realized gross profit For 2003 is a. P223,496 bP130,501 ——&-P165,553 .P215,745 3. Baguio Subdivision sells vacation houses in installment, The following information was taken from the accounting records as at December 31, 2002: Installment Accounts Receivable, January 1 755,000 Unrealized Gross Profit, January 1 339,750 2002 Installment Sales 950,000 Realized Gross Profit for 2002 389,250 ‘What is the balance of the unrealized gross profit as at December 31, 2002? A 378,000 b. P339,750 —¢. P427,500 . P389,250 4 Re Realty bought two adjacent lots with a land area of 1,600 square meters: Lot A 160,000 and Lot B P240,000. The lots were subdivided in 400 square meters, 200 square meters from each lot was taken and retitled as Lot C. Cost was apportionedId on March 31, 2003 cordingly based on the total square meters acquired. Lot A was sold on M for PI71s438 with s downpayment of P51,428. The balance was payable in ten quarterly payments starting July 1. The interest rate is 10% per annum based on the carrying balance of the principal What was the cost of Lot A? ~ 2 Pi6o.000 .P120,000 —_«.P150,000 (4, P110,000 How much was the realized gross profit for 2003? a pist2840 b. P3,600 d.P22,628.40 d. P30,428.50 How much was the interest income for 2003? a. P3,000.00 b.P5,700.00 _¢. P6,000.00 d. P8,100.00 Using the information in no. 4, additionally a house was constructed on Lot C for P152,000 which was finished on June 30, 2003 and had a useful life of 20 years. It was sold for 420,000 with a down payment of P180,000 with the balance payable in six semi-annual installments, The customer defaulted on June 30,2004, How much was the gain or loss on repossession? a. P79,400 b. P8440 , PI156,000 4. 148,400 On Oct. 2, 2003, Blast Co, sold a machine to Goldmine Ine. for P9,000,000. On that date, Goldmine paid P1,500,000 cash and signed a three-year non-interest bearing note for the balance. Blast appropriately accounted for the sale under the installment method. Goldmine made a timely payment of the first installment which included interest contemplated at 12%, Present value of an annuity of Pl at 12% for 3 years is(2.4017> Present value of Pl at 12% for three years is .7118. How much of the P9,000,000 represents interest? zi a. PO b P2,845,717 ©. P 1,345,717 1,495,750 Assuming a gross profit rate of 30%, how much is realized profit for 2004? a. P450,000, b, P728,384.70 ©. P533,847 4. P750,000 How much is the interest income in 20037 a. PO b. P225,000 . P180,127,50 4d. PP720,510