Accounting: Balance Sheet and Company

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PRACTICAL ACCOUNTING 1

1. On January 1, 2012, Revenue Company sold specialized computers costing P760,000 to Income, Inc. for
P990,000. Revenue Company’s trainers present numerous training sessions for Income’s employee during the installation period. Income made a 50% down payment, with the balance due upon completion of installation.
How much revenue should Revenue Company recognize on its books on January 1, 2012?
a. P990,000
b. P760,000
c. P495,000
d. P-0-

2. SAMpple Company is an experienced home appliance dealer. SAMpple Company also offers a number of services together with the home appliances that it sells (installation and maintenance). SAMpple Company sells dishwashers on a standalone basis, it also sells installation and maintenance service or dishwashers.
Pricing for dishwashers is as follows:
Dishwasher only
P16,000
Dishwasher with installation services
1,700
Dishwasher with maintenance services
1,950
Dishwasher with installation and maintenance services
2,000
In cases where maintenance services are provided, the maintenance service is separately prices within the arrangement at P350. Dishwashers are sold subject to a general right return. If a customer purchases a dishwashers with installation and/or maintenance services, in the event SAMpple Company does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds P1,600.
On January 1, 2012, SAMpple Company sells 100 dishwashers to BB Complex, Inc. a developer of high-rise condos. The dishwashers are installed and BB Complex Inc. purchases the dishwashers with the installation and maintenance services. The total price for the 100 dishwashers is P190,000. How much revenue should SAMpple
Company allocate to the dishwashers?
a. P150,000
b. P152,000
c. P160,000
d. P190,000

3. Presented below are changes in all the account balances of Basic Company for 2012, except for accumulated profits (losses):

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