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...
-
Use the information for Austin Automotive in Exercise 16 and assume a tax rate for the company of 30 percent. In Exercise 16, Austin Automotive sells an auto accessory for $ 180 per unit. The...
-
a. Go to www.bls.gov. Click on link Subjects; on the left, under Inflation & Prices, click on the link Consumer Price Index. Scroll down to the section CPI Tables, and find the link Consumer Price...
-
The following client prepared bank reconciliation is presented to Kautz during an audit of the financial statements of Cynthia Company: Required: Indicate one or more audit procedures Kautz should...
-
H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item. Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of...
-
Following are selected income statement and balance sheet data from two retailers, ANF (clothing retailer in the high-end market) and TJX (clothing retailer in the value- priced market), for the...
-
How would the companys cash needs change for the company in Examples 14-1 to 14-5 if the third project started in May instead of February and the retention was not released until the following year?
-
What are the potential benefits of delegation and when is it most likely to be successful What are some guidelines on what to delegate Why do some managers find it so difficult to delegate or share...
-
An article on brookings.edu noted that in recent years, a tight labor market hasnt led to a pickup in inflation. . . . This phenomenon is often referred to as the flattening of the Phillips curve. a....
-
A columnist on forbes.com observes that Robert Lucas argues that economic policy which depended on tricking people would not long work. Do you agree with this characterization of Lucass position?...
-
Do you think that Robert Lucas and Thomas Sargent would advocate increasing inflation in order to reduce unemployment in the short run? Briefly explain.
-
In an opinion column in the Wall Street Journal, economist Alan Blinder of Princeton University asks, Is the Phillips curve dead? a. Why have some economists and policymakers in recent years wondered...
-
An article on bloomberg.com stated that not all currentaccount deficits are bad . . . [but] one problem with persistent deficits is that foreign investors can end up owning a big share of assets,...
-
3. Analyze the method definition, and complete the following table. public void moveCircle(Circle circle, int deltaX, int deltaY) { Ans: int x-circle.getX(); int y circle.getY(); circle.setX(x +...
-
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...
-
T/F: BOs is the middle layer of stability model.
-
T/F: BOs are internally stable and externally adaptable.
-
T/F: BOs are the capabilities of achieving the goals (EBTs).
Study smarter with the SolutionInn App