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

The overhead cost variances , The following facts have been extracted fr...

The following facts have been extracted from the standard cost card for product X:

Marginal costing, a company wants to buy a new machine to replace on which ...

a company wants to buy a new machine to replace on which is having frequent breakdown.............. .......... c-the models suitable for different levels for demand of product?

Standard costing and variancees, LEV;LRV

LEV;LRV

Activity Based Costing, Multiple Versus Single Overhead Rates, Activity Dri...

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro p

LIFO, I need an example for Lilo,Fifo, and weighted average method for a ye...

I need an example for Lilo,Fifo, and weighted average method for a year. Jan.begining inventory, purchases in Feb., April, July, October, and November. Can you help me with this?

Cash flows statement , You have recently graduated from VU and are now work...

You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt M

MATERIALCOSTING, what are the material management questions

what are the material management questions

Material costs - cost accumulation, Material Costs - Cost Accumulation ...

Material Costs - Cost Accumulation However 'Materials' refer to the tangible inputs into the procedure of producing useful output. They might be indirect materials or direct

Classification, what is the classification of cost & how it is done?

what is the classification of cost & how it is done?

Calculate the variable overhead efficiency variance, Questions 8-10 rely on...

Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages