Pankratov Lakes is a new recreational real estate development which consists of 500 lake-front and lake-view lots.
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(a) Discuss the revenue recognition and gross profit measurement issues raised by this situation.
(b) How would the developer’s past financial and business experience influence your decision concerning the recording of these transactions?
(c) Assume 50 persons have accepted the offer, signed 10-year notes, and have stayed at the local resort. Prepare the journal entries that you believe are proper.
(d) What should be disclosed in the notes to the financial statements?
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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