Coffin Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is for 2014 and 2015. Compute the amount of realized gross profit recognized in 2014 and the balance in the deferred Gross Profit account on 31 DEC 2014. Compute the amount of realized gross profit recognized in 2015 and the balance in the deferred Gross Profit account on 31 DEC 2015. Prepare all journal entries required in 2015 On 1 January 2014, Wetzel Company sold property for $530,000. The property had cost Wetzel $365,700 when it was purchased in 2012. The note will be collected as follows: (a1) Compute the amount of gross profit Wetzel will recognize in 2014, assuming Wetzel uses the cost-recovery method. (a2) Compute the amount of gross profit Wetzel will recognize in 2015, assuming Wetzel uses the cost-recovery method. (a3) Compute the amount of gross profit Wetzel will recognize in 2016. assuming Wetzel uses the cost-recovery method. (b1) Compute the amount of gross profit Wetzel will recognize in 2014, assuming Wetzel uses the installment sales method. (b2) Compute the amount of gross profit Wetzel will recognize in 2015, assuming Wetzel uses the installment sales method. (b3) Compute the amount of gross profit Wetzel will recognize in 2016. assuming Wetzel uses the installment sales method.
