User Account

All Pages

Recognition of gross profit from the sale

Assignment Help Accounting Basics
Reference no: EM13131297

On January 1, Pacer Co. sold land that cost $20,000 for $50,000, receiving a note bearing interest at 5%. The note will be paid in three annual installments of $18,360 starting on December 31. Because collection of the note was deemed to be very uncertain, Pacer chose to use the cost recovery method. The first installment payment of $18,360 was received on Dec. 31. How much gross profit from this sale should Pacer recognize on the December 31 income statement?

Reference no: EM13131297

Questions Cloud

Comparability of the resulting financial statements : To what extent might companies' useof these different treatments reduce the comparability of the resulting financial statements?
Compute the sample mean-median-mode and midrange : From this data set, compute the sample mean, median, mode and midrange. Compute the 1st quartile and 3rd and interpret their meanings.
Determining minimizing cost : There are two companies, the IL Company and the MO Company. They are trying to build a 3000 ft. tunnel connecting St. Louis, IL and St. Louis, MO.
Describe what audit procedures should be used : You are a senior auditor working on a client who holds a large portfolio of mortgage obligations. Due to the soft housing market, the client has established a fairly significant loan loss reserve.
Recognition of gross profit from the sale : The first installment payment of $18,360 was received on Dec. 31. How much gross profit from this sale should Pacer recognize on the December 31 income statement?
Implications-contrapositives and converses : Use truth tables to prove that an implication is always equivalent to its contrapositive. Site an example where this is so. Use truth tables to prove that an implication may not be equivalent to its converse. Site an example where this is so.
Explain stakeholder theory : Construction-based business of your choice and explain stakeholder theory to illustrate the primary interests of the stakeholder groups and identify any areas of potential conflict between the stakeholder groups.
Compute probability of selecting a credit card customer : The distribution of amounts spent is approximately normal with a standard deviation of $10. Compute the probability of selecting a credit card customer at random and finding the customer charged between $70 and $83.
Which measures amount of earnings that may be distributed : An S corporation's accumulated adjustments account, which measures the amount of earnings that may be distributed tax-free (cpa adapted)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Income statement of ohio corp

Ohio Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2012, when the tax rate was 40%. Income tax expense reported by Ohio on its year end December 31, 2013 income statement is:

  Computation of payroll and related tax expense

An employee received a paycheck from her employer in the amount of $776.35. The pay-check stub indicated that in calculating her $776.35 net pay, $139.75 had been withheld for federal income tax, $34.25 for state income tax, and $74. 65 for FICA. ..

  What level of the irs sends the bill to c-ment

To what level of the IRS are C-Ment's returns sent if it is determined that it will be necessary to contact the corporation during the audit process?

  Information about intermediate accounting

Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

  Examine the steps used to allocate available partnership

Examine the steps used to allocate available partnership assets in liquidation under the Uniform Partnership Act (UPA) and make at least one recommendation for improving the process. Explain your rationale.

  How should bonds be classified by transit among liabilities

Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2011. Transit's fiscal year ends on December 31. Its annual financial statements are issued in April.

  Measuring and recording pension expense

Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2011.

  Pay all of the liabilities

Identify two ways to finance the remaining $20,000 you will need, so you can pay all of the liabilities when they are due.

  Application of the financial statement

Students will prepare a two to three (2-3) page response to the following: • Select either the balance sheet or income statement and explain how the use of it may be applied to your everyday life.

  Post the closing entries to income summary

Instructions, (a) Journalize the closing entries at April 30. (b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts. (c) Prepare a post-closing trial balance at April 30.

  Standard direct labor rate per hour

For the month of April, actual direct labor hours amounted to 2,000. In April, Thorp's standard direct labor rate per hour was:

  Overhead spending, efficiency and volume variance

Overhead is applied on the basis of direct labor hours. Three direct labor hours are required for each product unit. Planned production for the period was set at 8,000 units. Manufacturing overhead for the period is budgeted at $204,000, of which ..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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