Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its
Question:
Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2011 and 2012.
Required:
How much gross profit should Charter recognize in 2011 and 2012 from installment sales?
Transcribed Image Text:
2011 363,000 2012 Instalment sales Cost of instalment sales Original Gross profit Gross profit percentage Cash collections on the installment sales during 354,000 232,000 248,000 106,000 36% 30% 2011 149,000 101,000 2012 121,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (11 reviews)
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGeneral textaligngeneral verticalalignbottom whitespacenowrap msorotate0 msobackgroundsourceauto msopatt...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Question Posted:
Students also viewed these Accounting questions
-
Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2013...
-
How does the fair value method of accounting for a received dividend differ from the equity method?
-
You believe that stocks are overvalued so you elect to add bonds to your retirement plan to reduce future potential downside price risk. With cash you've received from the sale of equities, you...
-
1 of 4 Set 1 UIBS United International Business Schools Class Work Mergers and Acquisitions 1. Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at al market...
-
The manager of a concert hall keeps data on the total number of tickets sold and total sales income, or revenue, for each event. Two different ticket prices are offered. a. Find the slope of a line...
-
Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,025,000. The company used 1,000 hours of...
-
ABC, Inc. had the following partial balance sheet and partial annual income statement: The industry average DSO is 30 (based on a 365-day year). ABC plans to change its credit policy so as to cause...
-
Given the following code letters and components of financial statements indicate where each item would most likely be reported in the financial statements by inserting the corresponding code letters....
-
ABC limited. has a 6% coupon bonds that has maturity in 11 years. The bond pays interest semi-annually. What is the market price of a $1,000 face value bond if the yield to maturity is 12.9%?
-
As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 4 clamps. The base is assembled from 1 clamp...
-
Job Inc. owns 20,000 shares of No job Company which it bought in 2005. No job's total stockholders' equity is as follows: Common stock , $20 par ............$500,000 Additional paid in capital...
-
Fielding Wilderness Outfitters had projected its sales for the first six months of 2008 to be as follows: Jan. ......... $50,000 Feb. ......... $60,000 Mar. ......... $100,000 April ........ $180,000...
-
Rhinesch Corporation has two divisions: the Motor Division and the Pump Division. The Motor Division supplies the motors used by the Pump Division. The Pump Division produces approximately 10,000...
-
A friend in your study group claims that a change in just one amino acid in an important protein can cause a serious disease. Another friend says this doesnt make sense because a protein with a...
-
In an introductory physics laboratory, a student drops a steel ball of radius \(15 \mathrm{~mm}\), and a device records its position as a function of time. The clock on the device is set so that...
-
Do you agree or disagree with the following statement: People are inherently good, but are forced into behaving in negative ways by virtue of compelling forces they encounter within their...
-
Given the recent trends in products and services, does the focus strategy or sand cone strategy seem most applicable these days?
-
Explain why Durbin-Watson values can distinguish between positive and negative autocorrelation.
-
Fred Jones started a consulting business on 1 March 2016. During the period up to 30 June 2016, the following transactions occurred: 1. Fred put $10 000 of his own money into the business. 2. He...
-
Extend Algorithms 3.4 and 3.5 to include as output the first and second derivatives of the spline at the nodes.
-
Foti Co. accepts a $1,000, 3-month, 6% promissory note in settlement of an account with Bartelt Co. The entry to record this transaction is as follows. (a) Notes Receivable Accounts Receivable (b)...
-
According to its annual report, The Wendy's Company serves the best hamburgers in the business and other fresh food including salads, chicken sandwiches, and baked potatoes in more than 6,500...
-
Kaylee James, a connoisseur of fine chocolate, opened Kaylees Sweets in Collegetown on February 1, 2014. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice...
-
Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2014:...
-
What motivates you to succeed in your work or personal endeavors?Can you provide an example from your past experiences where you successfully turned a setback into a motivation to achieve a goal?
-
What are some key traits and qualities that define an effective leader in today's complex and dynamic business environment?
-
How has digital marketing transformed the healthcare industry? What are the key strategies for successful healthcare marketing in 2023? How can healthcare providers ensure compliance with healthcare...
Study smarter with the SolutionInn App