PKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF Ltd amounted to R1875 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previously purchased from PKT Ltd: R620 000 (31 December 2022) R750 000 (31 December 2021) Prepare the journal entries (with narrations) for the year ended 31 December 2022. Assume a tax rate of 30%.
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PKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF
Ltd amounted to R1875 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previously
purchased from PKT Ltd:
R620 000 (31 December 2022)
R750 000 (31 December 2021)
Prepare the
30%.
Step by step
Solved in 3 steps
- An item of inventory was purchased by company X for £500. Company X expects to sell the inventory for£700 and has to date incurred conversion costs of £130. A further £60 is expected to be incurred. Salesstaff will receive a commission of 4% from the sale.Compute the value at which this inventory item will be measured in company X’s statement of financialposition.Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31 Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at 31 December 2020 is £8,580. 6. Calculate the purchases for the year ending 31 Dec 2020 (a) £104,393 (b) £110,823 £105,317 (c) (d) £98,636 A company had the following assets and liabilities as at 31 December 2020: Share capital Trade and other payables Bank overdraft Trade and other receivables 20,000 15,000 10,000 Inventory Plant and equipment Long-term bank loan 18,000 20,000 35,000 18,000 Calculate the working capital for the company as at 31 December 2020 (a) £33,000 (b) (c) (d) £30,000 £13,000 £23,000Wendy Corp. reported the following data for 2019. Total net sales –P4,000,000; Goods purchased – P2,400,000; Beginning Inventory – P400,000;Ending Inventory – P600,000; 1 year advance rent received amounting toP60,000 to be applied in 2020; P80,000 total interest income from customerspromissory note earned--P60,000 of this was collected; Unrealized foreignexchange gains from foreign currency receivables – P120,000; Using cash basis,compute the total income subject to income tax.
- Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determine the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5 445 000 Cost of sales (3 539 250) Gross profit Operating expenses Income from operations Interest expense 1905 750 (1 122 000) 783 750 (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31 December 2020: 3.2.1 Gross margin 3.2.2 Net profit margin 3.2.3 Operating margin 3.2.4…Lily began trading on 1 February 2021. Her tax adjusted trading profits for the 15-month period ended 30 April 2022 were £30,000. Subsequent accounts will be prepared to 30 April cach year. Required: The resulted overlap profit amount is: a.£22.000 b.£4,000 c.£48.000 d.£24.000Gee Hee Traders started operating in 2021. For the year ended 2021, the sales, purchases, and closing inventory are P500,000, P200,000, and P10,000 respectively. What is the gross profit for the entity? Your answer
- On June 30, 2021, Casio Sony Company sold a property carried in inventory at a cost of P1,894,200 for P2,800,000. A 20% down payment was made and the balance payable in 8 equal installments of P280,000, payable quarterly starting September 30 and December 31, 2021. The market rate of interest is 12%.Required:How much is the total realized gross profit in 2021?Yeri Corp. reported the following data for 2019. Total net sales – P4,000,000; Goods purchased – P2,400,000; Beginning Inventory – P400,000; Ending Inventory – P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables – P120,000; required: Using Accrual Basis, compute the total income subject to income tax.Berlin Corp. reported the following data for 2021: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 ADD EXPLANATION THANKS
- Wendy Corp. reported the following data for 2019. Total net sales -P4,000,000; Goods purchased – P2,400,000; Beginning Inventory – P400,000; Ending Inventory – P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables – P120,000; REQUIRED: 1. Using cash basis, compute the total income subject to income tax.The financial statements for Wiley Ltd are presented below: Statement of profit or loss and other comprehensive income for Wiley Ltd for the year ending 30 June 2019 $ $ Sales (credit) 250 000 Cost of sales – Inventory—01 July 2018 (25 000) – Purchases (152 500) – Inventory—30 June 2019 27 500 (150 000) Gross profit 100 000 Selling and administrative expenses (20 000) Depreciation (40 000) Profit before tax 40 000 Income tax expense (20 per cent) (10 000) Profit after tax 30 000 Other comprehensive income – Total comprehensive income 30 000 Statement of financial position for Wiley Ltd as of 30 June 2019 ($) Cash 34000 Accounts receivable 46000 Inventory (cost) 27500 Plant and equipment 125000 less Accumulated depreciation (30000) Land 50000 Total assets 252500 Share capital 150000…Plantito Company began operations on January 1, 2019 and appropriately uses the installment method of accounting. The following data are available for 2019 and 2020.2019 2020Installment Sales P1,200,000 P1,500,000Cash collections from:2019 sales P400,000 P500,0002020 sales P600,000Gross Profit on sales 30% 40%The realized gross profit for 2020 isa. P240,000 c. P440,000b. P390,000 d. P600,000