Question
In: Accounting
Iowa Development (ID) made the following land sales and had the following cash collections: 2012 sold...
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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. 2013 Sold Boone land for $2,400,000 that cost ID $1,200,000. The land agreement required payments of $800,000 within one week of occupancy of the land and additional payments of $800,000 in 2014 and 2015. ID received the $800,000 payment and also a $500,000 payment for the Altoona land. |
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Assume ID can estimate uncollectible accounts accurately,
accrues bad debts at 5% of sales, and recognizes revenue upon
transfer of title. |
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
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.
Assume ID cannot estimate uncollectible accounts accurately and
recognizes revenue using the IFRS method for significant
uncertainty in collectibility.
Required: Prepare journal entries to record the
sale, cash collections, and...
Q3:( 5marks) Iowa Development (ID) made the following land sales and had the following cash collections:...
Q3:( 5marks)
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.
Required:
a- 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).
b-...
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Part A.
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It sold excess land in exchange for a four-year,
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