Beruflich Dokumente
Kultur Dokumente
Class: McGraw-Hill/Irwin
Problem 05-02
Requirement 1:
2011 Cost recovery %:
$180,000
$300,000
60%
Gross profit % =
70%
Gross profit % =
$120,000
40%
=
=
$100,000
$150,000
X
X
40%
30%
=
=
Debit
Credit
300,000
Correct!
Requirement 2:
Date Account
2011 To record installment sales
Installment receivables
Inventory
Deferred gross profit
2011 To record cash collections from installment sales
Cash
Installment receivables
2011 To recognize gross profit from installment sales
Deferred gross profit
Realized gross profit
2012 To record installment sales
Installment receivables
Inventory
Deferred gross profit
2012 To record cash collections from installment sales
Cash
Installment receivables
180,000
120,000
120,000
120,000 Correct!
48,000
48,000 Correct!
400,000
Correct!
280,000
120,000
250,000
250,000 Correct!
85,000
85,000 Correct!
Requirement 3:
Date
Cash Collected
Cost Recovery
2011
2011 sales
$120,000
$120,000
2012
2011 sales
2012 sales
2012 totals
$100,000
150,000
$250,000
$60,000
150,000
$210,000
Date Account
2011 To record installment sales
Installment receivables
Inventory
Deferred gross profit
2011 To record cash collections from installment sales
Cash
Installment receivables
2012 To record installment sales
Installment receivables
Inventory
Deferred gross profit
2012 To record cash collections from installment sales
Cash
Installment receivables
2012 To recognize gross profit from installment sales
Deferred gross profit
Realized gross profit
Debit
Credit
300,000
Correct!
180,000
120,000
120,000
120,000 Correct!
400,000
Correct!
280,000
120,000
250,000
250,000 Correct!
40,000
40,000 Correct!
Instructor
McGraw-Hill/Irwin
Problem 05-02
Correct!
Correct!
Correct!
40%
Correct!
30%
Correct!
$48,000
Correct!
$40,000
45,000
$85,000
Correct!
Correct!
Gross Profit
Correct!
Correct!
Correct!
Correct!
$40,000
0
$40,000
Correct!
2011
300,000
180,000
120,000
2012
400,000
280,000
100,000
150,000
Cash collections
Point of delivery method
Installment sales method
Cost recovery method
$
$
$
$
8/31/2011
100,000
200,000
40,000
-
$
$
$
$
8/31/2012
100,000
40,000
-
$
$
$
$
200,000
40%
8/31/2013
100,000
40,000
-
$
$
$
$
8/31/2014
100,000
40,000
100,000
$
$
$
$
8/31/2015
100,000
40,000
100,000
Requirement 2:
SILVA COMPANY
General Journal
Account
Installment receivable
Sales revenue
Cost of goods sold
Inventory
Point of Delivery
Debit
Credit
500,000
500,000
300,000
300,000
Installment Sales
Debit
Credit
Cost Recovery
Debit
Credit
Installment receivable
Inventory
Deferred gross profit
500,000
500,000
300,000
200,000
300,000
200,000
Cash
Installment received
100,000
100,000
100,000
100,000
100,000
100,000
40,000
40,000
100,000
100,000
Installment
Sales
Cost
Recovery
400,000
400,000
160,000
240,000
400,000
200,000
200,000
300,000
300,000
120,000
180,000
300,000
200,000
100,000
$
$
$
$
500,000
100,000
100,000
300,000
2011
10,000,000
2,400,000
5,600,000
8,000,000
2,000,000
Correct!
Gross profit (loss)
recognition:
2012
10,000,000
6,000,000
2,000,000
8,000,000
2,000,000
Correct!
2011
600,000
Correct!
2012
900,000
Correct!
2013
10,000,000
8,200,000
8,200,000
1,800,000
Correct!
2013
300,000
Correct!
Requirement 2:
WESTGATE CONSTRUCTION COMPANY
General Journal
2011
Debit
2,400,000
Account
Construction in progress
2012
Debit
3,600,000
Credit
2,400,000
Various accounts
Credit
2013
Debit
2,200,000
3,600,000
Credit
2,200,000
2,000,000
Accounts receivable
4,000,000
4,000,000
2,000,000
4,000,000
4,000,000
1,800,000
Cash
3,600,000
4,600,000
1,800,000
Accounts receivable
3,600,000
4,600,000
600,000
2,400,000
Construction in progress
Cost of construction
900,000
3,600,000
300,000
2,200,000
3,000,000
4,500,000
Requirement 3:
WESTGATE CONSTRUCTION COMPANY
Partial Balance Sheet
2011
Current assets:
Accounts receivable
Construction in progress
Less: Billings
Costs and profit in excess
of billings
2012
$
200,000
3,000,000
(2,000,000)
$
$
1,000,000
600,000
1,500,000
7,500,000
(6,000,000)
2,500,000
Contract price
Actual costs to date
Estimated costs to complete
Total estimated costs
Estimated gross profit (loss)
2011
2,400,000
5,600,000
2011
10,000,000
2,400,000
5,600,000
8,000,000
2,000,000
2011
600,000
Correct!
2013
3,200,000
3,100,000
Correct!
Gross profit (loss)
recognition:
2012
3,800,000
2012
10,000,000
6,200,000
3,100,000
9,300,000
700,000
2013
10,000,000
9,400,000
9,400,000
600,000
Correct!
Correct!
2012
(133,333) $
Correct!
2013
133,333
Correct!
Requirement 5:
Costs incurred during year
Estimated cost to complete
as of year-end
Contract price
Actual costs to date
Estimated costs to complete
Total estimated costs
Estimated gross profit (loss)
2011
2,400,000
5,600,000
2011
10,000,000
2,400,000
5,600,000
8,000,000
2,000,000
2011
600,000
Correct!
2013
3,900,000
4,100,000
Correct!
Gross profit (loss)
recognition:
2012
3,800,000
2012
10,000,000 $
6,200,000
4,100,000
10,300,000
(300,000) $
2013
10,000,000
10,100,000
10,100,000
(100,000)
Correct!
Correct!
2012
(900,000) $
Correct!
2013
200,000
Correct!
$10,000,000
2011
$ 2,400,000
5,600,000
2,000,000
1,800,000
2012
$ 3,600,000
2,000,000
4,000,000
3,600,000
2013
$ 2,200,000
4,000,000
4,600,000
2012
$ 3,800,000
3,100,000
2013
$ 3,200,000
-
2012
$ 3,800,000
4,100,000
2013
$ 3,900,000
-
2011
$ 2,400,000
5,600,000
2011
$ 2,400,000
5,600,000