User Account

All Pages

Discuss the balance in the deferred gross profit account

Assignment Help Accounting Basics
Reference no: EM131788652

On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2014. Apache has no significant obligations to perform services after the sale.

1. How much gross profit will Apache recognize in both 2013 and 2014 assuming point of delivery profit recognition?

2. How much gross profit will Apache recognize in both 2013 and 2014 installment sales method?

3. How much gross profit will Apache recognize in both 2013 and 2014 applying the cost recovery method?

4. What should be the balance in the deferred gross profit account at the end of 2014 applying the installment sales method?

Reference no: EM131788652

Questions Cloud

How does the us entity account for the transaction : How does the US entity account for the transaction in its financial statements for the year ended 31st December 2011
Determine hazels cost recovery deduction on asset : Determine Hazel's cost recovery deduction on this asset for 2017.
Entered during execution of the program : find and display the resources used to date for specified users whose identification numbers are entered during execution of the program.
Display a message indicating that it was not found : If a match is found, display the item number and the number currently in stock; otherwise, display a message indicating that it was not found.
Discuss the balance in the deferred gross profit account : What should be the balance in the deferred gross profit account at the end of 2014 applying the installment sales method
Create the journal entries to record the issuance of bonds : Create the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and (2) 95.
Prepare a bank reconciliation and make the journal entries : Prepare a bank reconciliation and make the journal entries to update the accounting records of Music-Is-Us as of December
Average number of words per sentence : Write a program that analyzes text contained in a file by finding the number of nonblank characters, number of nonblank lines, number of words
Write a program to input a string : Write a program to input a string and then input several lines of text. Determine whether the first string occurs in each line, and if so, print asterisks

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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