User Account

All Pages

What lake would recognize realized gross profit of

Assignment Help Financial Accounting
Reference no: EM132489085

Point 1: Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales.

Point 2: In 2017, Lake began operations and sold jet skis with a total price of $720,000 that cost Lake $360,000. Lake collected $240,000 in 2017, $240,000 in 2018, and $240,000 in 2019 associated with those sales.

Point 3: In 2018, Lake sold jet skis with a total price of $1,830,000 that cost Lake $1,098,000. Lake collected $610,000 in 2018, $480,000 in 2019, and $480,000 in 2020 associated with those sales.

Point 4: In 2020, Lake also repossessed $260,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $97,500 at the time they were repossessed.

Question 1: In 2017, Lake would recognize realized gross profit of:

Reference no: EM132489085

Questions Cloud

What is the taxable income and what is the income tax : What is their taxable income? What is their income tax? Alfred Wild is 32 years old; his wife Silvia is 34. They file a joint return.
What is a corporation : 1. What is a corporation? 2. What are the six steps to forming a corporation?
Calculating the firms WACC : Refer to the data for the Collins Group. Which of the following is the best estimate for the weight of debt for use in calculating the firm's WACC?
Write new security policies : Determining how strict or how lenient you want to make these policies for this particular company. Project Plan You are asked to create four separate policies
What lake would recognize realized gross profit of : In 2017, What Lake would recognize realized gross profit of? Lake Power Sports sells jet skis and other powered recreational equipment.
Tools and techniques of analysis assignment : Tools and techniques of Analysis Assignment help and solution, Financial Statement Analysis - assessment writing service - How can we use cross-sectional
What reliable would report installment receivables of : What Reliable would report installment receivables of? Reliable Enterprises sells distressed merchandise on extended credit terms.
What amount should the company record the land : Company on behalf of the seller and $1,000 due for the current year after the purchase date. For what amount should the company record the land?
How the disaster you envision impact infrastructure elements : Taking the previous information into account, envision a particular disaster occurring in your area. Note possible secondary disaster situations and indicate.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd