On July 1, 2021, Catlyn Company sold a parcel of undeveloped land to a construction company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 1, 2021, Catlyn Company sold a parcel of undeveloped land to a construction company for $540,000. The book value of the land on Catlyn's books was $140,000. Terms of the sale required a down payment of 10% of the selling price and 9 annual payments of 10% of the selling price plus interest at an appropriate interest rate due on each July 1 beginning in 2022. Catlyn has no significant obligations to perform services after the sale. Calculate the balance in the deferred gross profit account in 2022 applying the installment sales method. (Please round answer to the nearest dollar, i.e. $86,666.67 should be interested as 86667). On July 1, 2021, Catlyn Company sold a parcel of undeveloped land to a construction company for $540,000. The book value of the land on Catlyn's books was $140,000. Terms of the sale required a down payment of 10% of the selling price and 9 annual payments of 10% of the selling price plus interest at an appropriate interest rate due on each July 1 beginning in 2022. Catlyn has no significant obligations to perform services after the sale. Calculate the balance in the deferred gross profit account in 2022 applying the installment sales method. (Please round answer to the nearest dollar, i.e. $86,666.67 should be interested as 86667).
Expert Answer:
Answer rating: 100% (QA)
Gilen Step Installment Sales method cender this method gross profit is ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these general management questions
-
On July 1, 2011, 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...
-
On July 1, 2018, 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...
-
Refer to the situation described inBE 5-1. What should be the balance in the deferred gross profit account at the end of 2012 applying the installment sales method? In BE 5-1, On July 1, 2011, Apache...
-
Beck Manufacturing reports the following information in T-account form for 2019. The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished...
-
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2013, its first year of operations. (1) Use the following information about the...
-
Give the number of bond-stretching terms, bond-bending terms, bond-torsion terms, van der Waals terms, and electrostatic terms in a force field for each of the following: (a) CF3OH; (b) CCl3CCl2OH.
-
Columbus, Inc., issued \(\$ 50,000\) of 10 -year, \(6 \%\) bonds payable on January 1, 2006. Columbus pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line...
-
Hill Corporation is in the leasing business and faces a marginal tax rate of 21 percent. It has leased a building to Whitewater Corporation for several years. Hill bought the building for $150,000...
-
Dividends Per Share Windborn Company has 10,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends: 20Y1...
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
-
Consider the graph of f(x). What is the average rate of change of f(x) from x = 4 to x = 9? Please write your answer as an integer or simplified fraction. Enable Zoom/Pan y 20 (0,17) 16 12 00 4 la 2...
-
What is the System Procurement Phase, when does it start, and when does it end?
-
Implement a language identification system in the programming language of your choice. You should start by selecting several languages (four or five should do). You should have a suitable quantity of...
-
What is the structure of a UC Description? What is the optimal length of a UC Description? Paragraph? Pages?
-
What is the System Definition Phase, when does it start, and when does it end?
-
How are project supply chains different from the make-to- stock supply chains of the traditional manufacturing organizations?
-
Which aspect specifically enhances the visualization experience? A) Listening to iPod relaxation playlist tracks B) Incorporating all five senses C) Placing an expected outcome on the desired...
-
Time Travel Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $25,000 to help organize the corporation. Time Travel also issued...
-
W.R. Grace & Co.is a global specialty chemicals company. The following disclosure note was included in recent financial statements: Change in Accounting Principle In the third quarter of 2008, Grace...
-
On October 1, 2011, the Submarine Sandwich Company entered into a franchise agreement with an individual. In exchange for an initial franchise fee of $300,000, Submarine will provide initial services...
-
Access the FASB's Codification Research System at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items: 1. Initial measurement of stock...
-
Describe the operation and characteristics of a difference amplifier.
-
What is the input resistance of an ideal current-to-voltage converter?
-
Describe the operation and characteristics of an op-amp circuit using a capacitor as a feedback element.
Study smarter with the SolutionInn App