On January 1, 2019, John Corp. sold a parcel of land to Goodman Inc. John...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2019, John Corp. sold a parcel of land to Goodman Inc. John had purchased the land three years ago at $110,000. John received $50,000 cash and a noninterest bearing note for $320,000 from Goodman Inc. The note is due December 31, 2021 There is no readily available market value for the land, but the current market rate for comparable notes is 8%. SHOW YOUR LABELLED WORK!
1-1. Determine the selling price of the land.
1-2. Record the sale of the land by John .
1-3. Prepare an amortization table for John using the effective interest rate method.
1-4. Prepare any necessary journal entry(ies) at the end of 2020.
1-5. How would the transactions relating to this situation be reported on Johns December 31, 2019 statement of cash flows?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
