Question

UNTUT what is being asked. Write your answers and complete solutions on a separate sheet of paper 1. SuperGirl Company started operations on January 2, 2015. The following information is gathered for 2015 installment accounts receivable, Dec. 31 Deferred gross profit, Dec 31 (before adjustment) Gross profit rate based on sales P1,500,000 1,050,000 2 596 Required: Compute for the realized gross profit on sales for 2015 (10 points) GRADING RUBRIC: 10 points - correct answer, correct amount/account used 1-9 points - minimal miscalculations; correct answer O point - no answer 2 Gross profit rates of Robin Company were 35%, 33%, and 30% of sales for 2013, 2014, and 2015, respectively. The following account balances are available at the end of 2015: Year of Sale 2013 2014 2015 Installment Accounts Receivable P 6.000 P 61.500 - 199,000 Deferred Gross Profit (before adjustment) P 7,230 P.60, 750 P.120, 150 Required: Compute the total realized gross profit to be reported in the Statement of Comprehensive Income for the year ended December 31, 2015 (20 points)

Answer 1

Question-1 solution Amorint Deferred Gross profit, Dec 31kbefore adjustment) P1,050,000 Less Deferred Gross profit, Dec 31 . (P 375,000) lafter adjustment). - Realized Gross profit, 2015 P 675,000 Explanation D Defferes Gross profit Dec 31, Cafter adjustment): Deffered Cross Proliz - Dec 31 (after adjustment) - . Gross Installments accounts Receivable Dec 31 1 x. prolit Rake = P1,500,000 x 251. = p 375,000

Question-2 solution 2013 À 7,230 2014 2015 P60,750 P120,150 Deffered Gross profit, before adjustment Less Deffered Gross profit at end 2013 (16,000x35%) 2014 (8 51,500 + 337.) 2015 21 195,000x30%) :. (P 2,100) : 18.20,295) 18.58,500) Giross profile A Realized pis, 130 : P 40, 455 P81,650 z P5;130 + P40,455 + P 61,650 Realized Gross profit on December 31, 2015 = P 107,235
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