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

Briefly decribe the benefits of a cash budget, You are provided with the su...

You are provided with the subsequent information relating to Cello Ltd. The accountant is currently preparing the budget for the next three months ending 30 June 2010.

Materials mix variance, M aterials mix variance :  It can be described a...

M aterials mix variance :  It can be described as that portion of direct material usage variance which is the variation between the actual quantities of ingredients used in a mi

Cost behavior, maintenance costs at a hospital

maintenance costs at a hospital

Mini Report about Brand Image, Write a mini report in which you "Critically...

Write a mini report in which you "Critically Describe, Aanlyse and Reflect on the Brand Image Extension.  This task must include evidence of collection primary data on the same

Calculate the yield to maturity of the bond, 7. The Isabelle Corporation re...

7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha

Compute the net cash used (provided) by financing activities, Martinez Corp...

Martinez Corporation engaged in the following cash transactions during 2012. Sale of land and building $186,710 Purchase of treasury stock 42,130 Purchase of land 39,130

Transaction affect the cash flows statement, If a company trades in a build...

If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement

Write Your Message!

Captcha
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!

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