Interest earned on down payment, Cost Accounting

Assignment Help:

You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on assets. What value will you record the sale at?

Sales Price:	$ 600,000.00
Down Payment:	$ 200,000.00
Outstanding Balance at Start of Year 1:	$ 400,000.00
Outstanding Balance at Start of Year 2:	$ 200,000.00

0 interest earned Down Payment
10% Interest Earned on the remaining $400,000 for 1 Year	$40,000
10% Interest Earned on the remaining $200,000 for 1 Year	$20,000

Related Discussions:- Interest earned on down payment

four decisions for which abc information is useful, What are the key reaso...

What are the key reasons for product cost differences among traditional costing system and ABC systems? Explain four decisions for which ABC information is useful?

Direct materials and direct labor:, McDaniel Company manufactures 100-pound...

McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00

Scope of cost accounting, what is cost accounting

what is cost accounting

Case study, A family in Cambridge received their Christmas presents from fr...

A family in Cambridge received their Christmas presents from friends in Paris this week – 50 days after their parcel was posted. French posties sent it to Cambodia, and the near-20

WACC, formula for calculting WACC

formula for calculting WACC

Use the high-low method to determine variable cost per unit, The following ...

The following data is available regarding costs and units: Observation Machine-hours Total Operating Costs January 4,000 $45,900 February 5,000 52,500 March 3,400 44,025 April 4,40

Case study, Managerial ACCT 2 Ulrich Framing is well known for the quality ...

Managerial ACCT 2 Ulrich Framing is well known for the quality of its picture framing. Lucinda Ulrich, CEO, believes that the number of linear feet or framing used is the best is t

#title.Budget., Ask The James Company, a wholesaler, budgeted the following...

Ask The James Company, a wholesaler, budgeted the following sales for the indicated months June 2004 July 2004 August 2004 Sales on account 1800,000 1,92

Cost accounting, diff between cost estimation and cost accounting

diff between cost estimation and cost accounting

Advantages and disadvantages of uniform costing, Advantages and Disadvantag...

Advantages and Disadvantages of Uniform Costing Advantages 1. It enables costs to be compared simply 2. It makes it easier to computerize the accounting system of d

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages