Cash Merchandise Inventory Land Common Stock Retained Earnings $ 67,000 47,000 107,000 87,000 134,000 Lopez experienced the following events during Year 2: 1. Sold merchandise inventory that cost $37,600 for $79,900. 2. Sold land that cost $42,800 for $80,300. Required: a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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lomework
//ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%
Cash
arch
Lopez Sales Company had the following balances in its accounts on January 1, Year 2:
Merchandise Inventory
X J Home | My NCWU.Edu
Land
Common Stock
Retained Earnings
a. Gross margin
b. Gain on sale of land
$ 67,000
47,000
107,000
87,000
134,000
Lopez experienced the following events during Year 2:
1. Sold merchandise inventory that cost $37,600 for $79,900.
2. Sold land that cost $42,800 for $80,300.
Required:
a. Determine the amount of gross margin recognized by Lopez.
b. Determine the amount of the gain on the sale of land recognized by Lopez.
O
M Question 7 - Chapter 3 Homewo
JI
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Transcribed Image Text:Qmyncwu-Search lomework //ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F% Cash arch Lopez Sales Company had the following balances in its accounts on January 1, Year 2: Merchandise Inventory X J Home | My NCWU.Edu Land Common Stock Retained Earnings a. Gross margin b. Gain on sale of land $ 67,000 47,000 107,000 87,000 134,000 Lopez experienced the following events during Year 2: 1. Sold merchandise inventory that cost $37,600 for $79,900. 2. Sold land that cost $42,800 for $80,300. Required: a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez. O M Question 7 - Chapter 3 Homewo JI < Prev Saved H 7 of 8 WEB BA Next > W
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