AC 302 CHAPTER 9 QUESTION 7

AC 302 CHAPTER 9 QUESTION 7
Name			Date		
Instructor			Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield							
Primer on Using Excel in Accounting by Rex A Schildhouse							
							
E9-7 (Relative Sales Value Method) Larsen Realty Corporation purchased a tract of unimproved land for							
$55,000 	. This land was improved and subdivided into building lots at an additional cost of 						$30,000 
These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.							
							
		Group	No. of Lots	Price per Lot			
		1 	9 	$3,000 			
		2 	15 	$4,000 			
		3 	19 	$2,000 			
							
Operating expenses for the year allocated to this project total					$18,200 	Lots unsold at the year-end	
as follows:							
		Group	No. of Lots				
		1 	5 				
		2 	7 				
		3 	2 				
							
Instructions:							
At the end of the fiscal year Larsen Realty Corporation instructs you to arrive at the net income realized on this operation to date.							
							
							
Group	No. of lots	"Sales price
per lot"	"Total
sales price"	"Relative sales
price as %"	Cost total	"Cost allocated
to lots"	Cost per lot
1 	Number	Amount	Amount	Formula	Amount	Formula	Formula
2 	Number	Amount	Amount	Formula	Amount	Formula	Formula
3 	Number	Amount	Amount	Formula	Amount	Formula	Formula
			Formula	Formula		Formula	
							
Lots Sold							
Group	No. of Lots	"Price
per lot"	Total selling price	Cost per lot	"Extended
cost"	Gross Profit	
1	Number	Amount	Formula	Amount	Formula	Formula	
2	Number	Amount	Formula	Amount	Formula	Formula	
3	Number	Amount	Formula	Amount	Formula	Formula	
	Formula		Formula		Formula	Formula	
							
	Sales (see schedule)			Amount			
	Cost of goods sold (see schedule)			Amount			
	Gross profit			Formula			
	Operating expenses			Amount			
	Net income			Formula