Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: Pankratov Lakes is a new recreational real estate development that comprises of 500 Lake front and lake view lots. As a special incentive to the first 100 buyers of lake view lots, the developer is offering 3-years of free financing on 10 year, 12% notes, no down payment and one week at a nearby established resort – “a $1200 value”. The normal price per lot is $12,000. The cost per lake view lot to the developer is an estimated average of $2000. The development costs continue to be incurred, the actual average cost per lot is not known at this time. The resort promotion costs is $700 per lot. The notes are held by Davis Corp. a wholly-owned subsidiary of Pankratov.

A) Discuss the revenue recognition and net profit measurement issues raised by this condition?

B) How would the developer’s past financial and business experience affect your decision regarding the recording of these transactions?

C) Suppose 50 persons have accepted the offer, signed 10yr notes and have stayed at the local resort. Make the journal entries which you think are suitable?

D) What, if anything, must be disclosed in the notes to financial statements?

problem 2: Recently, John Brown Company experienced a strike that affected a number of its operating plants. The controller of this company pointed out that it was not suitable to report depreciation expense throughout this period as the equipment did not depreciate and an improper matching of costs and revenues would result. She based her position on the given points:

A) It is suitable to charge the period with costs for which there are no related revenues arising from production.

B) The fundamental factor of depreciation in this instance is wear and tear and as equipment was idle no wear and tear occurred
Please comment on the appropriateness of the controller’s comments.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91443

Have any Question? 


Related Questions in Accounting Basics

Royalty calculation problem setdaenerys owns a 38ths

Royalty Calculation Problem Set Daenerys owns a 3/8ths mineral interest in Section 8. The other 5/8ths are owned by Viserys. Daenerys and Viserys both enter into a lease with Westeros Oil and Gas on the AAPL form lease, ...

Consider that a company has excess cash flow google is a

Consider that a company has excess cash flow. Google is a good one to look at. Google invests in short term securities to earn something on the cash. What is another way the cash could be used to create wealth for the in ...

Assignmentto write discussion post min 350 words for each

Assignment To write discussion post. Min 350 words for each task. Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 word ...

Payrolllocate a payroll processing company you may either

Payroll Locate a payroll processing company. You may either contact one in person, by telephone, or conduct an Internet search. Write a brief report describing the advantages and disadvantages of using a payroll processi ...

Accounting case studyplease provide the answers to these

Accounting Case Study: Please provide the answers to these questions in the form of a paper. Please ensure the paper and all paper references are in APA format. CASE: Evaluating a Company's Budget Procedures. Tom Emory a ...

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

Accounting and regulatory environmenti need someone to

Accounting and Regulatory Environment. I need someone to write a paper for me on accounting and the regulatory environment. The instructions are below on what it is to include. In the wake of the accounting and finance s ...

Answer the following questionduring 2012 nasa co produced a

Answer the following question. During 2012, NASA Co. produced a new line of computers that carry a three-year warranty against manufacturer's defects. Based on industry experience, NASA Co. estimated warranty costs at 1% ...

Exercise 1north company has completed all of its operating

Exercise 1 North Company has completed all of its operating budgets. The sales budget for the year shows 50,120 units and total sales of $2,128,200. The total unit cost of making one unit of sales is $22. Selling and adm ...

Assignmentpart iexplain what you learn about the

Assignment PART I Explain what you learn about the disclosures of your SEC 10-K company relating to Income Taxes. Your comments should relate to net income or loss as well as to the balance sheet treatment and disclosure ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro