Need answer please On January 1, 2006, Bartell Company sold its idle plant facilityto Cooper, Inc., for $1,050,000. On this date, the plant had adepreciated cost of $735,000. Cooper paid $150,000 cash onJanuary 1, 2006, and signed a $900,000 note bearing interestat 10%. The note was payable in three annual installmentsof $300,000 beginning January 1, 2007. Bartell appropriatelyaccounted for the sale under the installment method. Coopermade a timely payment of the first installment on January 1,2007 of $390,000, which included interest of $90,000 to dateof payment. At December 31, 2007, Bartell has deferred grossprofit of:a. $153,000.b. $180,000.c. $225,000.d. $270,000.

To find the deferred gross profit as of December 31, 2007, we need to know the total gross profit…

Answered: On January 1, 2006, Bartell Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Need help
On January 1, 2008, Rex Co. sold a used machine to Lake, Inc. for P525,000. On this date, the machine had a depreciated cost of P367,500. Lake paid P75,000 cash on January 1, 2008 and signed a P450,000 note bearing interest at 10%. The note was payable in three annual installments of P150,000 beginning January 1, 2009. Rex appropriately accounted for the sale under the installment method. Lake made a timely payment of first installment on January 1, 2009 of P195,000, which included interest of P45,000 to date of payment. At December 31, 2009, Rex had deferred gross profit of
Provide Answer in text Format please
Provide Answer with calculation and explanation
On January 1, 2016, Cougar Company purchased a piece of machinery and signed a zero-interest-bearing note in payment. The note requires Cougar to pay 100,000 in three years. The interest rate that properly reflected the time value of money at the time was 5% and an equipment dealer in St. Louis sells the identical piece of machinery for $86,000. Cougar expected the machinery to have an 8 year useful life, and $6,000 salvage value. Cougar depreciated the machine using the straight-line method. On June 30, 2018, Cougar exchanged the machinery for a newer model. In addition to the old equipment, Cougar paid $10,000 cash. At the time of the exchange, the old machinery had a fair value of $70,000. Prepare the journal entry to record this exchange, assuming the arrangement has commercial substance. Prepare the journal entry to record the exchange, assuming the arrangement lacks commercial substance. ICHY-
On April 1, 2013, Archer Corporation purchased a new machine on a deferred payment basis. A down payment of $6,000 was made and six monthly installments of $4,000 each are to be made beginning on May 1, 2013. The cash equivalent price of the machine was $28,000. Archer incurred and paid installation costs amounting to $500. The amount to be capitalized as the cost of the machine is a. $28,000b. $22,600c. $28,500d. $24,600
On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Faye Company. In lieu of cash payment, Faye Company gave a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16%. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss) 2. Interest income 3. Current portion of the notes receivable 4. Non current portion of the notes receivable
On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year P500,000, 10% note to State Co. The note requires interest to be paid annually every December 31 starting December 31, 2022 until the maturity of the note on December 31, 2026. The equipment has a cost of P1,000,000 and accumulated depreciation as of January 1, 2022 of P550,000. The prevailing interest rate for a note of this type is 12%What amount should be reported as gain (loss) on sale of equipment? (Round off PV factors to four decimal places.) O 13,940 gain 13,940 loss 50,000 gain O 50,000 loss O Answer not given
On January 2, 2009, Easy Pay Co. sold a plant to Menchie Co. for P1,500,000. On that date, the plant's carrying amount was P1,000,000. Menchie gave Easy Pay P300,000 cash and a P1,200,000 note, payable in four annual installments of P300,000 plus 12% interest. Menchie made the first principal and interest payment of P444,000 on December 31, 2009. Easy Pay uses the installment method of revenue recognition. In its 2009 income statement, what amount of realized gross profit should Easy Pay report?
On January 1, 2021, Beauty Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Gee Company. In lieu of cash payment, Gee Company gave Beauty Company a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The 10% interest rate is a realistic rate of interest for a note of this type. Required: Compute the following as of December 31, 2021: (Round off PV factors to 4 decimal places before multiplying.) 1. Effective interest rate 2. Gain or loss on sale of machinery (place parenthesis if loss) 3. Interest income
On January 1, 2021, Beauty Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Gee Company. In lieu of cash payment, Gee Company gave Beauty Company a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The 10% interest rate is a realistic rate of interest for a note of this type. Required: Compute the following as of December 31, 2021: (Round off PV factors to 4 decimal places before multiplying.) 4. Current portion of notes receivable Answer 5. Noncurrent portion of notes receivable
Velasquez Company sold an item of equipment costing P3,800,000 to Vince for P5,000,000. 20% downpayment was paid upon signing of the agreement while the balance was payable in four equal annual installment. Vince defaulted on the second installment prompting Velasquez to repossess the sale. The repossessed equipment was appraised at P2,250,000 after P100,000 reconditioning cost. How much is the repossession gain or (loss) assuming the installment sale was recorded was initially recorded under accrual method? (130,000) (850,000) 350,000 (750,000)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS