Kerry corp purchased a used bottling machine from bobs

Assignment Help Accounting Basics
Reference no: EM13480545

Kerry Corp purchased a used bottling machine from Bob's Bottling Inc. on Jan 1, 2012 for $2100000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $1575000. Kerry paid with $300000 cash and a note for $1800000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $600000. Kerry Corp made their first payment on Jan 1, 2013 of $780000 which included interest of $180000 to date of payment. As of Dec 31, 2013 Bob has deferred gross profit of ?

Reference no: EM13480545

Questions Cloud

Harwichport company has a current ratio of 30 and an : harwichport company has a current ratio of 3.0 and an acid-test ratio of 2.8. current assets equal 210000 of which 5000
What is the present value of 500 per year for ten years at : what is the present value of 500 per year for ten years at 12 percent assuming a regular or ordinary
Can a person ever say that family violence will never : stress violence and abuseq1. can it be said that stressor events which originate within the family hit people harder
Perform a comparative analysis of eastman corporation by : perform a comparative analysis of eastman corporation by completing the analysis below. describe and comment on any
Kerry corp purchased a used bottling machine from bobs : kerry corp purchased a used bottling machine from bobs bottling inc. on jan 1 2012 for 2100000. bob accounted for the
Platypus building inc won a bid for a new office building : platypus building inc. won a bid for a new office building contract. below is info from the project accountant total
Summary statement of the premise methods and results of : summary statement of the premise methods and results of each article. summary and reference pages in apa format. 2
Describe the effect of each transaction on assets : describe the effect of each transaction on assets liabilities and owners equity. 1. incurred advertising expense on
A cash-strapped young professional offers to buy your car : a cash-strapped young professional offers to buy your car with four equal annual payments of 3000 beginning two years

Reviews

Write a Review

Accounting Basics Questions & Answers

  Finally in november kip bought two tubs for the total cost

kip started a wholesale store this year selling bulk peanut butter. in january of this year kip purchased an initial

  Internal growth rate of the company

Dothan Inc. has a 10% ROE and a 30% dividend payout ratio. Its stock is currently selling at $50 per share and it recently paid a $2 dividend per share. a) Calculate the internal growth rate of the company.

  Unit cost for the direct materials

What is the unit cost for the direct materials for 19x1, assuming direct materials cost is for the production of 507,000 units? A. $3.20 b. $3.80 c. $4.00 d. $4.32 128.

  Deduct as a medical expense

In addition, Lonnie paid the contractor $5,000 to construct an entrance ramp to his home and $7,000 to widen the hallways to accommodate his wheelchair. Lonnie's AGI for the year was $80,000. How much of these expenditures can Lonnie deduct as a m..

  What elements of the cash flow statement do you think are

what information does the cash flow statement provide that you cannot see in the other financial statements income

  Asset placed on the lessee financials

Financial leases are considered to be the same as a purchase and therefore the asset is placed on the lessee's financials. Do you feel that it is proper treatment to consider the asset as the property of the lessee even though no title has passed ..

  Proper provision for doubtful accounts

Allowance for Doubtful Accounts has an unadjusted balance of $1,100 at the end of the year, and an analysis of customer's accounts indicates doubtful accounts of $12,900. Which of the following records the proper provision for doubtful accounts?

  What are the nominal and effective costs

Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500 and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th day and took discounts.

  Income taxes in future financial reporting periods

Are there any provisions that a company can take to avoid a big hit from audit findings for income taxes in future financial reporting periods - sort of a temporary holding accounts?

  Company inventory turnover ratio

Bowa Construction's days sales outstanding is 50 days (on a 365-day basis). The company's accounts receivable equal $100 million and its balance sheet shows inventory equal to $125 million. What is the company's inventory turnover ratio?

  Direct materials quantity variance

The following data relate to direct materials costs for November: Actual costs 4,600 pounds at $5.50  Standard costs 4,500 pounds at $6.00 What is the direct materials quantity variance?

  Advantages and disadvantages of outsourcing

Voice App is a midsize software company that specializes in voice recognition software. Due to rising costs of maintaining IT technical support, your director is considering outsourcing­ your technical support services. Currently, your technical supp..

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