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

Utility of break even point in managerial decision making, UTILITY OF BREAK...

UTILITY OF BREAK EVEN POINT IN MANAGERIAL DECISION MAKING 1. It assists in determination of sales mix 2. It assists in exploring new markets 3. It assists in deciding abo

Allocation and apportionment of overheads to cost centers, how do I apporti...

how do I apportion

Prepare an income statement, Mrs. M. Botham is a sole trader, selling a var...

Mrs. M. Botham is a sole trader, selling a variety of fashionable clothing materials. Her business year end is 31 December 2011. You have been given the following trial balance

Calculate the cost of capital and units of capital, The owner of the Hughes...

The owner of the Hughes Car Wash believes that the relationship between the number of cars washed and the amount of labor employed is Q = 0.8 + 4.5 L - 0.3 L2 where Q = the num

Standard costs establish the minimum desirable costs, Standard Costs Establ...

Standard Costs Establish the Minimum Desirable Costs When actual costs incurred exceed or else are below the standard costs, we after that investigate the variances along with

VARIABLE COST, WHAT IS VARIABLE COST

WHAT IS VARIABLE COST

Weighted average method, Weighted Average Method This way is a perpet...

Weighted Average Method This way is a perpetual weighted average system whereas the issue price is recalculated after one of receipt of stocks taking into accounts both money

Is there barely one way to conduct fca, Q. Is there barely one way to condu...

Q. Is there barely one way to conduct fca? Ans. No. It is significant for each area to put the FCA process in perception with its waste management goals. Every community w

Calculate the equivalent units of production, A company manufactures two pr...

A company manufactures two products, Product A manufactured in Process Y and Product B manufactured in Process Z. The following information is available for a period:

Relevant costs and decision-making, Relevant Costs and Decision-Making ...

Relevant Costs and Decision-Making The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevanc

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages