Problem 10-13 (AICPA Adapted) On October 1, 2021, Grimm Company consigned 40 freezers to Holden Company costing P14,000 each for sale at P20,000 each and paid P16,000 in transportation costs. On December 30, 2021, Holden Company reported the sale of 10 freezers and remitted P170,000. The remittance was net of the agreed 15% commission. What amount should be recorded as consignment sales revenue for 2021? a. 154,000 b. 170,000 C. 196,000
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A: Introduction: The consignor's (Wing co.'s) machines are held by the consignee (Wind Co.) who sells…
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A: Consignment is a commercial agreement in which a company, also known as a consignee, agrees to pay a…
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Q: On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of…
A: Consignment Account: It is made to calculate the profit earned or loss incurred by the consignor…
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A: International Financial Reporting Standard (IFRS) 15, revenue from contracts with customers…
Q: 58. During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at…
A: Purchase commitment is a form of agreement or contract with company and their suppliers, which says…
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A:
Q: . On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power…
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A: Inventory value is the total cost associated with that stock on acquiring or storing of acquiring…
Q: On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost…
A: Given information is: Goods consigned 80 freezers costing $450 each
Q: Shrek Company consigned 100 freezers costing P50,000 each to Disney Company on January 2, 2020. The…
A: Consignment seems to be an agreement between a distributor (consignee) and their provider…
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A: Formula: Total estimated project cost = Estimated project cost + Fixed fee in the contract. Sum of…
Q: How much is the net profit of Spider related to the seven bikes sold?
A: Net profit on sale of bikes is calculated as sales value minus commission minus purchase cost minus…
Q: On October 1, consignment. P20,000 each. P10,000. The consignor agreed to absorb the consignee's…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
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A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…
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A: Commission on sale = (50,000 x 7) x 15% = 52,500
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Q: On July 2, 2022, Honesty Co. consigned 3,200 books costing P60 and retailing for P100 each to…
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A: The question is based on the concept of Finacial Accounting.
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A: List price = P3,000, 000 Net price = List price - reduction in list price
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A: Ans. As given in the question, the service contract is spread over 2 years. And so the revenue will…
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A: Given a specified rate of return, Present Value (PV) is the current value of a future sum of money.…
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A: Introduction:- Calculation of total sales value as follows:- Total sales value = No. of contracts…
Q: On July 1, 20x1, Lala Home Store shipped 150 ovens, costing P9,000 each on consignment basis to SM…
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Q: A company received 505 pairs of slippers on consignment from C Company. C company’s cost for each…
A: Consignment is the facility available to the consignor by transferring the goods to the consignee on…
Q: Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a…
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Q: During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900…
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Q: Big Company consigned 1,000 units of ordinary printer, costing P700 each to a consignee to be sold…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On March 1, 2022, ABC Co. was contracted to construct a building for a customer at a total contract…
A: solution: Under percentage of completion method of revenue recognition, revenue is recognized based…
Q: 7. On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power…
A: Formula: Total estimated cost = Cost incurred + Estimated cost
Q: On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces of bread toasters.…
A: Under Consignment, consignee sells the goods and remits back the money to the consignor after…
Q: Anemic Inc. manufactures and sells specialized equipment normally at P1,000,000 for the medical…
A:
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- On October 20, 2021, ABC Co. consigned 40 freezers in Holden Co. for sale P1,000 each and paid P800 in transportation costs. On December 30, 2021, Holden reported the sale of 10 freezers and remitted P8,500. The remittance was net of the agreed 15% commission. What amount should ABC recognize as consignment sales revenue for 2021? [A] 7,700 [B] 8,500 [C] 9,800 [D] 10,000PROBLEM: On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. REQUIREMENT: How much net income did HBO realize in August on the consignment? A. 37,500 income. B. 32,500 income C. 33,500 loss D. 32,500 loss What is the total cost of inventory of the unsold handbags A. 60,000 B. 66,000 C. 71,000 D. 75,000 THANK YOU SO MUCH IN ADVANCE FOR THE HELP :)A company received 505 pairs of slippers on consignment from C Company. C company’s cost for each pair of slippers was P800 each, and they were priced to sell at P1,000. A Company’s commission on consigned goods is 10%. On December 31, 2021, 5 pairs remained. On December 31, 2021, what amount should be reported as payable for the consigned goods? a. 454,000 b. 404,000 c. 490,000 d. 450,000
- Given: The 456 Company purchased office supplies from A-One Supplies worth P124,000 on July 06, 2021. A - One Supplies gave the buyer trade discount of 15% and 10%. The buyer and supplier agreed with the term of 5/15, n/60. Required: How much will be paid by 456 Company on July 21?On August, 2019, KBO consigned to UFO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, UFO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to KBO after deducting a 20% commission on the sales price. 1. How much net income did KBO realize in August on the consignment? A. 37,500 income C. 33,500 loss B. 32,500 income D. 32,500 lossOn November 30, 20x1, Northup Co. consigned 90 freezers to Watson Co. for sale at ₱1,600 each and paid ₱1,200in transportation costs. A report of sales was received on December 30, 20x1 from Watson reporting the sale of 20 freezers, together with a remittance that was net of the agreed 15% commission. How much, should Northup receive as remittance from Watson Co.
- On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. Assume further that 50% of the remaining posters were returned to Win incurring freight of P5,000. Half of the returned goods were lost during the shipment. How much is the total loss and/or expenses accounted by Win in relation to the consignment other than the Cost of Goods Sold? Determine the cost of ending inventoryOn October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. How much is the net income?On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of themonth, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price.How much net income did HBO realize in August on the consignment?A. 37,500 income C. 33,500 lossB. 32,500 income D. 32,500 lossWhat is the total cost of inventory of the unsold handbags?A. 60,000 C. 71,000B. 66,000 D. 75,000
- On October 5, 2024, the Lalisa Trading Company consigned 48 computer units, costing P 8,000 each, to Jennie, Inc. The units were to be sold on either cash or credit basis at a commission of 15% of net sales. Lalisa paid freight of P 1,800 on the shipment. On November 11, Jennie received the goods. Sales were made as follows: · October 15 – 10 units for cash at P 13,000 each · October 28 – 12 units on account at P 14,000 each On October 31, 2024, collections on accounts amounted to P 95,000, and an allowance of P 2,000 was given to a charge customer for a defective unit. On November 15, 2024, Jennie made the proper remittance of cash received from customers. Required: 1. Determine the amount of remittance 2. Determine the consignment profit 3. Determine the cost of ending inventory on consignmentIn 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition? a. 10, 000 b. (6, 000) c. (14, 000) d. (10, 000)Yellow. Arrow Construction. Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Yellow Arrow entered into a fixed-price contract to construction an office bundling for P12,000,000. Information relating to the contract is as follows: At December 31 2018 2019 15% 45% Percentage of completion Estimated total cost at completion Gross profit recognized (cumulative) P9,600,000 P9,000,000 600,000 1,440,000 How much is the contract costs incurred during 2019?