chiisukeeki
New member
Snow Jobs Ltd. sells large snow making equipment to ski hills. They signed a contract with Whisper Mountain on November 1, 2011 for a sales price of $1,102,310. Whisper Mountain paid an upfront non-refundable deposit of $81,489 and will be making minimum payments of $85,578 due on the first of each month until the full amount is paid. Snow Jobs will service the equipment for $62,462 per year. Costs incurred to December 1, 2011 total $296,101. The equipment was finished and delivered to Whisper Mountain by December 24th for further costs of $336,483. Because Snow Jobs wants to get more business from Whisper Mountain, they have given Whisper Mountain an unlimited right to return until June 30, 2012. Snow Jobs thinks that if Whisper returns the equipment, they may be able to sell it to another mountain.
Calculate the net income that would be recorded for the year ended December 31, 2011.
Please leave brief explanations; thank you in advance!
Calculate the net income that would be recorded for the year ended December 31, 2011.
Please leave brief explanations; thank you in advance!