JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: P 250,000 1,745,000 1,483,250 80,000 25% Unearned gift certificates revenue, January 1 Gift certificates sold Gift certificates redeemed Gift certificates which expired Gross profit rate based on cost

JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: P 250,000 1,745,000 1,483,250 80,000 25% Unearned gift certificates revenue, January 1 Gift certificates sold Gift certificates redeemed Gift certificates which expired Gross profit rate based on cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 3: JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 250,000 Gift certificates sold 1,745,000 1,483,250 80,000 25% Gift certificates redeemed Gift certificates which expired Gross profit rate based on cost Requirements: 8. What amount should be reported for the year ended December 31 as: A. Sales В. Cost of Sales Gross profit D. Unearned gift certificates revenue C.
JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. Gross profitB. Unearned gift certificates revenue
JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. SalesB. Cost of Sales
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements: What amount should be reported for the year ended December 31 as Gross Profit? Unearned gift certificates revenue?
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements:8. What amount should be reported for the year ended December 31 as:A. SalesB. Cost of Sales
12. Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year:Unearned revenue, January 1 780,000Gift certificates sold 2,700,000Gift certificates redeemed 2,340,000Gift certificates unredeemed for a long time 120,000Cost of goods sold 60% What amount should be reported as unearned revenue at year end?
Please show your solution in good accounting form. Thank you! JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. Cost of Sales
Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized. Information for the current year is as follows: Unearned revenue, January 1, 2013 Gift certificates sold 650,000 2,250,000 1,950,000 100,000 Gift certificates redeemed Gift certificates expected not to be redeemed Cost of goods sold 60% On December 31, 2013, what amount should be reported as unearned revenue?
Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000
Sales-related transactionsAfter the amount due on a sale of $28,000, terms 2/10, n/eom, is receivedfrom a customer within the discount period, the seller consents to thereturn of the entire shipment for a cash refund. The cost of themerchandise returned is $16,800. (A) What is the amount of the refundowed to the customer? (B) Journalize the entries made by the seller torecord the return and the refund.
TRUE OR FALSE 1. Cost of goods sold is an operating expense. 2. Gross profit is equal to net sales plus cost of goods sold. 3. Net sales is equal to sales revenue plus sales returns and minus sales discounts. 4. Credit terms of 3/15, n/30 means the purchaser can deduct 3% of the invoice price if paid within 15 days. 5. FOB shipping point means title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight. 6. In the closing entry process, the sales returns and allowances account is debited. 28. If the ownership of merchandise passes to the buyer when the se. delivers the merchandise for shipment, the terms are stated as FOB destination. 29. The abbreviation FOB stands for Free On Board. 30. If the buyer bears the transportation costs related to a purchase, the terms are said to be FOB destination. 31. The seller may prepay the transportation costs even though the terms are FOB shipping point. 32. Title to merchandise…
The following are taken from the record of ABM Company for the year ended December 31, 20X2: DEBIT CREDIT |Sales Purchase Discount Purchase Returns and allowances Purchases Freight-in P764,985 8,200 5,465 459,990 9,180 13,300 5,455 25,000 Sales discount Sales returns and allowances Depreciation Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense Interest Income Interest Expense Gain on sale of PPE Bad Debts Expense 10,000 80,000 55,000 35,000 60,000 5,444 5,677 5,465 ??? • Based on actual physical count, inventory balance are as follows: January 1, 20X2 December 31, 20X2 P25,455 P20,765 Bad debts expenso is 4% of net sales. Classify the bad debt expense as general and administrative expense. Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases c. Cost of goods sold d. Bad debts expense e. Gross Profit. f. Total Expenses g. Net Income/Loss