On July 1, 2008, Scott sold a parcel of land to Winchell Company for $150,000 under an
Question:
On July 1, 2008, Scott sold a parcel of land to Winchell Company for $150,000 under an installment sales contract. Winchell made a $28,506 cash down payment on July 1, 2008, and signed a four-year 12% note for the $121,494 balance. The equal annual payments of principal and interest on the note will be $40,000 payable on July 1, 2009 through July 1, 2012. The land could have been sold at an established cash price of $150,000. The cost of the land to Scott was $130,000. Circumstances are such that the collection of the installments on the note is reasonably assured.
For each of the following questions, compute your response and enter it in the box to the right of the question. DO NOT USE dollar signs, Round all responses to the nearest dollar. If your response to any question is "zero" enter the numeral "0" in the related box. Do not leave the box blank or use an "alpha" response. Use commas to indicate thousands in your response as applicable. For instance, if your response was one million dollars, you would enter it as follows: 1,000,000; or if your answer was one thousand five hundred fifty four dollars, you would enter it as follows: 1,554. Similarly if your response was two hundred twenty five dollars then no comma would be necessary and you would present your response as: 225.
What is the long-term portion of this Note Receivable that would be reported on Scott's December 31, 2008 balance sheet?
What is the current portion of this Note Receivable that would be reported on Scott's December 31, 2008 balance sheet?
On Scott's December 31, 2008 balance sheet, what was the accrued interest receivable on this Note Receivable?
On Scott's income statement for the year ended December 31, 2008, what was the interest income from this Note Receivable?
On Scott's income statement for the year ended December 31, 2008, what was the gain on the sale of the land?
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller