Typewritten answers only, please, no handwritten answers. Thank you Lopez Sales
ID: 2338301 • Letter: T
Question
Typewritten answers only, please, no handwritten answers. Thank you
Lopez Sales Company had the following balances in its accounts on January 1, 2018:
Lopez experienced the following events during 2018:
Sold merchandise inventory that cost $37,600 for $79,900.
Sold land that cost $42,800 for $80,300.
Required
Determine the amount of gross margin recognized by Lopez.
Determine the amount of the gain on the sale of land recognized by Lopez.
Typewritten answers only, please, no handwritten answers. Thank you.
Cash $ 67,000 Merchandise Inventory 47,000 Land 107,000 Common Stock 87,000 Retained Earnings 134,000Explanation / Answer
The amount of gross margin recognized by Lopez
= 79,900 - 37,600 = $42,300
The amount of the gain on the sale of land recognized by Lopez = 80,300 - 42,800 = $37,500
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