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

Cost accounting, cost accounting as a descriptive/analytical discipline

cost accounting as a descriptive/analytical discipline

Total variable overheads variances, Total Variable Overheads Variances ...

Total Variable Overheads Variances  If Variable Overhead Expenditure Variance =  Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads

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

Absorption vs. variable costing, Absorption vs. Variable Costing Varilux ma...

Absorption vs. Variable Costing Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further

Reconciliation of profits, Reconciliation of Profits Reconciliation of...

Reconciliation of Profits Reconciliation of profits disclosed by Financial Accounts and Costing Accounts in an interlocking system, While interlocking cost accounting system

Determine which project is more lucrative - investment , The Zooline Compan...

The Zooline Company (Pty) Ltd is an American based company that focuses on the LSM 8 -10 markets. They do vehicle interiors, raise or lower suspensions and install top end sound sy

Process costing, how to prepare separate accounts for each process given ha...

how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

Assignment, What is the major value of the weighted cost of capital calcula...

What is the major value of the weighted cost of capital calculation for the firm?

Role of cost accounting in organization, Role of Cost Accounting in Organiz...

Role of Cost Accounting in Organization Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist deci

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