Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note. *How much is the Installment Sales to be recognized in 2021? *How much is the revenue to be recognized in 2021? *How much is the trade in to be reported at Jan. 1,2021? *How much is the net income? To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note. *How much is the Installment Sales to be recognized in 2021? *How much is the revenue to be recognized in 2021? *How much is the trade in to be reported at Jan. 1,2021? *How much is the net income? To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...
Related questions
Question
Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note.
*How much is the Installment Sales to be recognized in 2021?
*How much is the revenue to be recognized in 2021?
*How much is the trade in to be reported at Jan. 1,2021?
*How much is the net income?
To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning