Hwk02 - Intro The worksheets that follow provide pro forma workpapers to help you solve the assigned homework problems They organize your solution in a

Hwk02 - Intro The worksheets that follow provide pro forma...

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Unformatted text preview: Intro The worksheets that follow provide pro forma workpapers to help you solve the assigned homework problems. They organize your solution in a manner that is consistent with the analytical methods that we discuss in class and allow you to focus on the technical issues, rather than workpaper techniques and computer skills. However, you should continuously analyze the organization of the solution and the answers that you receive, as you work the problems. That is the only way that you will learn the skills and techniques that you will need for your long-term success. You should also refrain from checking the correct answers until after you have completed your solution. Click on the appropriate tab below to move to the worksheet for the homework problem that you want to work on. Once you have completed the assignment, save the file to your computer, then submit it in the manner prescribed in the course syllabus. NOTE: Cells with red dots in them contain notes that provide additional information about the cell contents. Double click on those cells to read the notes. Also, you need enter information only in the cells that are highlighted in bright yellow. Page 1 Intro assigned th the analytical ith her than the answers that e skills and rom checking checking the the problem that you submit it in the on about the cell mation only in the Page 2 16-23 Installment Sales Prob. 16-23 Two Payments GAIN REALIZED Cash Received Downpayment Installments Debt Relief AMOUNT REALIZED $5,000 $80,000 $15,000 $100,000 Basis Selling Exp. GAIN REALIZED ($40,000) ($1,200) $58,800 Less: GAIN RECOGNIZED Gain Realized Ordinary Income (deprec. recapture) Gross Profit $58,800 $0 $58,800 Selling Price Debt Relief $100,000 ($15,000) $85,000 Contract Price Gross Profit Percentage $58,800 $85,000 69% Year 1 Downpayment Gross profit % $5,000 69% $3,459 $0 Ordinary income Profit $3,459 Years 2 - 9 Annual Installment $10,000 Gross profit % 69% Profit Total Installments Profits $6,918 8 $55,341 Total Recognized Profits $58,800 Page 3 16-23 Check Figures $58,800 $58,800 Page 4 ...
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