Question

Iowa Development (ID) made the following land sales and had the following cash collections: 2012 sold...

Iowa Development (ID) made the following land sales and had the following cash collections:

2012 sold Altoona land for 2,000,000 that cost ID $1,200,000. The land agreement required payments of $1,000,000 within one week of occupancy of the land, and the other $1,000,000 in 2013 ID received the $1,000,000 payment.

Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit in 2012 and 2013 using the installment sales method under U.S GAAP(Deferred gross profit method)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,600,000...
1. On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end. In 2018, Rigsby would recognize realized gross profit of: Multiple Choice $ 0. $440,000. $123,200. $1,400,000....
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts...
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts Receivable 9,900 Allowance for Doubtful Accounts $100 Inventory 17,750 Supplies 1,400 Land 9,000 Buildings and Equipment 42,000 Accumulated Depreciation 4,200 Accounts Payable 10,700 Common Stock 20,000 Retained Earnings (1/1/2016) 42,400 Dividends 2,000 Sales Revenue 69,700 Cost of Goods Sold 36,860 Salaries Expense 12,500 Advertising Expense 8,100 Other Expenses 4,500 During the month of December, Davis entered into the following transactions: Date Transaction Dec. 4...
Hahndorf Ltd acquired 100% of the shares of Sarina Ltd on 1 July 2015 for $700,000,...
Hahndorf Ltd acquired 100% of the shares of Sarina Ltd on 1 July 2015 for $700,000, when the equity of Sarina Ltd consisted of: Share Capital                                  $500,000 General Reserve                                 80,000 Retained Earnings                             30,000 All identifiable assets and liabilities of Sarina Ltd were fairly valued at acquisition except the machinery, which had a fair value of $140,000. The machinery had a further 7-year life with depreciation based on the straight-line method. Selected financial information for both companies at 30 June 2018...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT