Amount of gross profit realized

Assignment Help Accounting Basics
Reference no: EM13149170

On January 1, 2007, Barkly Company sold property for $200,000. The note will be collected as follows: $100,000 in 2007, $60,000 in 2008, and
$40,000 in 2009. The property had cost Barkly $150,000 when it was purchased in 2005.

Instructions

a) Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery method.

b) Compute the amount of gross profit realized each year, assuming Barkly uses the installmentsales method.

Reference no: EM13149170

Questions Cloud

How many moles of o2 will be produced : Given the following reaction: 4 KO2 + 2 H2O + 4 CO2 ==> 4 KHCO3 + 3 O2 How many moles of O2 will be produced if 3.12 moles of CO2 react completely?
Formula for computing book value per share : The ledger of JFK, Inc. shows common stock, common treasury stock, and no preferred stock. For this company, the formula for computing book value per share is?
Are monopolies and oligopolies : Are monopolies and oligopolies (firms demonstrating power) always bad for society?
Participation in the year total income : Determine Hassell's and Lawson's participation in the year's net income of $312,000 under each of the independent assumptions above.
Amount of gross profit realized : Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery method. Compute the amount of gross profit realized each year, assuming Barkly uses the installmentsales method.
Calculate the final pressure of a gas : Calculate the final pressure of a gas if a 953-mL sample of the gas at 1.25 atm and 50.0 degrees Celsius is changed to 1.55 L at 75.0 degrees Celsius.Be sure to include units and correct significant figures
Find probability that one of tires will last more than miles : The lifetime of automobile tires of a certain brand are found to follow an exponential distribution with mean 30 (in thousands of miles). Find the probability that one of these tires will last
A central bank that adopts a fixed exchange : A central bank that adopts a fixed exchange rate system may sacrifice its monetary autonomy in setting its domestic monetary policy.
Evidence to conclude that difference cats and dogs sleep : Is there sufficient evidence to conclude that a difference exists between the proportions of cats and dogs that sleep more than 10 hours per day?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accounts paayable confirmations

Discuss situations in wihc the auditor should use accounts paayable confirmations and discuss wheter the auditor is required to use them.

  Determining the existence of unrecorded liabilities

Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?

  Problem on straight line method of depreciation

Abbey Ltd purchased machinery on 1 October 2010 for $80 000. The estimated useful life of the machinery is 5 years, with an estimated residual of $5000. The entity's balance date is 30 June, and it uses the straight line method of depreciation. On..

  Basics of periodic inventory system

What are some reasons why a merchandiser might prefer to use a perpetual inventory system over a periodic inventory system?

  Comprehensive income as separate component

Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses as other comprehensive income and as a separate component of stockholders' equity are:

  Net operating income of short-run changes

The impact on net operating income of short-run changes in sales for a segment can be most clearly predicted by analyzing:

  Financial difficulties faced by gold company

Gold Company was experiencing financial difficulties, but was not bankrupt or insolvent. The National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000.

  Amount of the return on plan

During the year 3, Gruber paid out $20,000 in benefits and continued to contribute $70,000 to the plan. The plan assets had a fair market value of $377,000. What was the amount of the return on plan assets in year 3?

  Capital from treasury stock

On Dec.1 declared a $0.50 Per share cash dividend to shockholders of record on Dec.14, payable January 10, 2010. Why is cash and Paid in capital from Treasury stock, both debit?

  Rent income and income statement

Rent income should be shown on the income statement : a. Pretax as part of income from continuing operations before tax. b. net of tax as part of income from continuing operations before tax

  What is the total cash paid to the preferred stockholders

Assume that Corporation X has 20,000 shares of $10 par value cumulative 6% preferred stock and 5,000 shares of common stock outstanding. No dividends were paid in 2009 and 2010. In 2011, the board of directors declares dividends of $50,000. What i..

  Federal income tax

In 2010, Richard, a single taxpayer, has adjusted gross income of 40,450. His AGI includes $4000 of qualified dividends. Richard has no dependents and does not itemize deductions. What is his 2010 federal income tax?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd