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  • Chap 6-8

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    Maria Luz Clariza Fontelo
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    The document contains schedules and calculations related to sales, costs of sales, gross profits, expenses, and net income for a real estate development company. Schedule 1 shows the company had total sales of $8,060,000 from selling 70 lots at different price points. Schedule 2 calculates the cost of sales rate at 43% based on total costs and sales values for 310 lots. The main calculations determine realized and unrealized gross profits, operating expenses, net income before taxes of $437,515, and an installment receivable balance.

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    ADVAC PA MORE

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    CHAP.6-8

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    The document contains schedules and calculations related to sales, costs of sales, gross profits, expenses, and net income for a real estate development company. Schedule 1 shows the company had total sales of $8,060,000 from selling 70 lots at different price points. Schedule 2 calculates the cost of sales rate at 43% based on total costs and sales values for 310 lots. The main calculations determine realized and unrealized gross profits, operating expenses, net income before taxes of $437,515, and an installment receivable balance.

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    8 views9 pages

    Chap 6-8

    Uploaded by

    Maria Luz Clariza Fontelo
    The document contains schedules and calculations related to sales, costs of sales, gross profits, expenses, and net income for a real estate development company. Schedule 1 shows the company had total sales of $8,060,000 from selling 70 lots at different price points. Schedule 2 calculates the cost of sales rate at 43% based on total costs and sales values for 310 lots. The main calculations determine realized and unrealized gross profits, operating expenses, net income before taxes of $437,515, and an installment receivable balance.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 9

    Problem 6-8

    Sales (Schedule 1)
    Cost of Sales (43 % of Sales, Schedule 2)
    Gross Profit
    Less: Sales Commission
    Gross Profit excluding Commission
    Less: Deferred Gross Profit
    Realized Gross Profit
    Expenses:
    Advertising
    Sales Managers Salaries
    General Operating Expenses
    Net Loss

    SCHEDULE 1- SALES
    A
    B
    C

    26 @ 150,000
    32 @ 100,000
    12 @ 80,000

    Total Sales Price


    3,900,000.00
    3,200,000.00
    960,000.00
    8,060,000.00

    SCHEDULE 2 - COST OF SALES RATE


    Number of Lots
    A
    80
    B
    100
    C
    130
    310

    Cost of Land
    Legal Fees, etc
    Grading Contract
    Water and Sewerage
    Paving Expenses
    General Operating Expenses
    Total Cost
    Divided by: Total Sales Value
    Cost of Sales Rate

    4,800,000.00
    600,000.00
    2,250,000.00
    1,849,000.00
    2,663,000.00
    1,770,000.00
    13,932,000.00
    32,400,000.00
    43%

    PROBLEM 6-7
    1

    Total Installment Sales


    Less: Installment Receivable- Dec 31
    Total Collection in Sales

    Collections
    Gross Profit Rate:
    Total Selling Price
    Total Cost
    Gross Profit
    Divided by:Total Sales
    Realized Gross Profit

    Installment Receivable- Dec 31


    Multiply: Gross Profit Rate
    Unrealized Gross Profit

    Realized Gross Profit

    Interest Income
    Less: Operating Expenses
    Net Income Before Income Tax
    Income Tax
    Net Income Before Income Tax

    730,000.00
    900,000.00
    590,000.00

    Price

    Cash Received
    1,650,000.00
    800,000.00
    240,000.00
    2,690,000.00

    Unit Sales Price


    150,000.00
    100,000.00
    80,000.00

    Total Sales Value

    3,450,000.00
    1,594,600.00
    1,855,400.00
    1,855,400.00
    9,500,000.00
    5,225,000.00
    4,275,000.00
    9,500,000.00

    45%
    834,930.00
    1,594,600.00
    45%
    717,570.00
    834,930.00

    520,300.00
    682,130.00
    673,100.00
    235,585.00
    437,515.00

    8,060,000.00
    3,465,800.00
    4,594,200.00
    221,000.00
    4,373,200.00
    2,913,658.00
    1,459,542.00

    2,220,000.00
    (760,458.00)

    Installment NR Balance
    2,250,000.00
    2,400,000.00
    720,000.00
    5,370,000.00

    Total Sales Value


    12,000,000.00
    10,000,000.00
    10,400,000.00
    32,400,000.00

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