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Lopez Sales Company had the followIng balances In Its accounts on January 1, Year 2 Cash $42,000 Merchandise Inventory 36,000 Land 50,000 70,000 58,000 Common Stock Retained Earnings Lopez experlenced the following events during Year 2: 1. Sold merchandise Inventory that cost $22,000 for $40,500. 2 Sold land that cost $30,000 for $46,000. Requlred a. Determine the amount of gross margln recognized by Lopez. b. Determine the amount of the galn on the sale of land recognized by Lopez.

Lopez Sales Company had the followIng balances In Its accounts on January 1, Year 2 Cash $42,000 Merchandise Inventory 36,000 Land 50,000 70,000 58,000 Common Stock Retained Earnings Lopez experlenced the following events during Year 2: 1. Sold merchandise Inventory that cost $22,000 for $40,500. 2 Sold land that cost $30,000 for $46,000. Requlred a. Determine the amount of gross margln recognized by Lopez. b. Determine the amount of the galn on the sale of land recognized by Lopez.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lopez Sales Company had the following balances In Its accounts on January 1, Year 2 Cash $42,000 Merchandise Inventory 36,000 Land 50,000 Common Stock 70,000 Retzined E=mings 58,000 Lopez experlenced the following events during Year 2: 1. Sold merchandise Inventory that cost $22,000 for $40,500. 2 Sold land that cost $30,000 for $46,000. Requlred a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the galn on the sale of land recognized by Lopez. a. Gross margin b.Gain on sale of land
Transcribed Image Text:Lopez Sales Company had the following balances In Its accounts on January 1, Year 2 Cash $42,000 Merchandise Inventory 36,000 Land 50,000 Common Stock 70,000 Retzined E=mings 58,000 Lopez experlenced the following events during Year 2: 1. Sold merchandise Inventory that cost $22,000 for $40,500. 2 Sold land that cost $30,000 for $46,000. Requlred a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the galn on the sale of land recognized by Lopez. a. Gross margin b.Gain on sale of land
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