Johnson realty bought a 2000- hectare island for 10000000

Assignment Help Financial Accounting

Reference no: EM13376947

Johnson Realty bought a 2,000- hectare island for $10,000,000 and divided it into 200 equal size lots.As the lots are sold, they are cleared at an average cost of $5,000.Storm drains and driveways are installed at an average cost of $8,000 per site.Sales commissions are 10% of selling price.Administrative costs are $850,000 per year.The average selling price was $160,000 per lot during 2009 when 50 lots were sold.During 2010, the company bought another 2,000- hectare island and developed it exactly the same way. Lot sales in 2010 totalled 300 with an average selling price of $160,000. All costs were the same as in 2009.

Required: Prepare income statements for both years using both absorption and variable costing methods.

Reference no: EM13376947

Questions Cloud

Budgeting is an important internal activity preparing : budgeting is an important internal activity. preparing budgets involves forecasting sales and estimating costs. for

Q1 a you have been approached by a robin hood a client law : q1 a you have been approached by a robin hood a client law firm who employs around 80 staff and as a result of a

Question 1 refer to the article pawsey n brown a amp : question 1 refer to the article pawsey n. brown a. amp chatterjee b. 2011. lsquothe potential adoption of ifrs for u.s.

Johnson realty bought a 2000- hectare island for 10000000 : johnson realty bought a 2000- hectare island for 10000000 and divided it into 200 equal size lots.as the lots are sold

Santana rey is considering the purchase of equipment for : santana rey is considering the purchase of equipment for business solutions that would allow the company to add a new

Problemsantana rey expects second quarter 2012 sales of her : problemsantana rey expects second quarter 2012 sales of her new line of computer furniture to be the same as the first

After reading an article about activity-based costing in a : after reading an article about activity-based costing in a trade journal for the furniture industry santana rey

The computer workstation furniture manufacturing that : the computer workstation furniture manufacturing that santana rey started january is progressing well. as of the end of

User Account

All Pages