Lopez Sales Company had the following balances in its accounts on January 1, Year 2: Cash Merchandise Inventory Land Common Stock Retained Earnings Lopez experienced the following events during Year 2: 1. Sold merchandise inventory that cost $30,400 for $64,600. 2. Sold land that cost $39,200 for $73,500. Required: $ 58,000 38,000 98,000 78,000 116,000 a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez. a. Gross margin b. Gain on sale of land

Lopez Sales Company had the following balances in its accounts on January 1, Year 2: Cash Merchandise Inventory Land Common Stock Retained Earnings Lopez experienced the following events during Year 2: 1. Sold merchandise inventory that cost $30,400 for $64,600. 2. Sold land that cost $39,200 for $73,500. Required: $ 58,000 38,000 98,000 78,000 116,000 a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez. a. Gross margin b. Gain on sale of land

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 24EA: Post the following November transactions to T-accounts for Accounts Payable and Inventory,...

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