Phillips Sales Company had the following balances in its accounts as of January 1, 2014. Cash $64,000

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Phillips Sales Company had the following balances in its accounts as of January 1, 2014.

Cash $64,000

Merchandise inventory 44,000

Land 104,000

Common stock 84,000

Retained earnings 128,000

Phillips experienced the following events during 2014.

1. Sold merchandise inventory that cost $35,200 for $74,800.

2. You sold land that cost $41,600 for $78,000.

Required

a. Determine the amount of gross margin recognized by Phillips.

b. Determine the amount of the gain on the sale of land recognized by Phillips.

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Survey of Accounting

ISBN: 978-0077862374

4th edition

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

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Posted Date: May 11, 2023 02:23 AM

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Phillips Sales Company had the following balances in its accounts as of January 1, 2014. Cash $64,000

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