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On January 1, 2019, John Corp. sold a parcel of land to Goodman Inc. John...

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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?

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