Question: Problem 6: Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30%

Problem 6: Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale and the balance is payable in four equal annual installments every December 31. The cost of the equipment is P1,200,000. Ignore the concept of time value of money. Requirement: Provide the journal entries for 2020 and 2021. Show all computations in good form

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance sheet: Common stock (1,000,000 shares authorized; 500,000 shares issued),...

Problem 6: Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale...

Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale and the...

Malangas Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale and the...

Accounting lab AutoSave OFF wa Lab 8 spring 2020 - Compatibility Mode Q @ v Home Insert Draw Design Layout References Mailings Review View Share Comments Times New... 12 AA Aa v = FE AL AaBbCcDdE...

Question 1 Sullivan Software sells packages of a software program and one year's worth of technical support for $500. Its packaging lists the $500 sales price as comprised of a software program at a...

Alpha Corporation purch 80% of Beta Company on January 1 2020, for $149.200 On that date controlling in hand fair value of $37 520 and Beta reported common stock outstanding of $100.000 and retained...

Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2018, Bull'sEye sold $2,250,000 of gift cards, and $2,050,000 of the gift cards were redeemed for...

Cherry Hill Glass Company employs a normal-costing system. The following information pertains to the year just ended. Total manufacturing costs were $1,250,000. Cost of goods manufactured was...

Everyone is familiar with waiting lines or queues. For example, people wait in line at a supermarket to go through the checkout counter. There are two factors that determine how long the queue...

Economic Value Added ( EVA ) technique Attempts to capture the economic profit generated by a company by subtracting a charge for capital from net operating profit, EVA = NOPAT ( Capital employed...

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....