Ch. 5 Income Measurement and Profitability Analysis (4 marks) Alpine West Ltd, operates a dowahil ki area near Lake Tahoe, Califoria. An al day, adult ticket can be purchased for $55. Adult ustomers also can purchase a season pas that entitles the passholder to ski any day during the season, which typically rns from December 1 through April 30. The season passis nontransferable, and the $450 price is nonrefundable. Alpine expects its season pass olders to use their passes equaly throughout the season. The company's financial year ends on December 31 On November 6,2013,Jake Lawson purchased a season ticket Required: 1. When should Alpine West recognize revenue from the sale of is season passes? 2. Prepare the appropriate journal entries that Alpine would record on November 6 and December 31. 3. What will be included in the 2013 income statement and 2013 tatement of financial position related to the sale of the season pass to Jake Lawson? E 5-1 Service reveaue L01 (This is a variation of Exercise 5-3 focusing on journal entris. E 5-4 Installment sales Charter Corporation, which began business in 2013, appropriately uses the instalment sales method of accounting for its installment sales. The following dala were obtained for sales during 2013 and 2014: method; journal entries LO3 2013 2014 Installment sales $360,000 234,000 $350,000 Cost of installment sales Cash collections on installment sales during 2013 245,00 150,000 100,000 2014 120,000 Required: Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system. On April 1, 2013,the Apex Corporation sold parcel of underdeveloped land to the Applegate Construction Company for $2,400,000. The book value of the land on Apex's books was $480,00 Tems of the sale required a down payment of $120,00 and 19 annual payments of $120,000 plus interest at an appropriate interest rate due on cach April 1 begining in 2014. Apex has no significant obligations to perform services after the sale Required: 1. Prepare the necessary eatries for Apex to record the sale, receipt of the down payment, and recipt of the first installment assuming that Apex is able to make a reliable estimate of posible uncollecible amounts (that is, point of delivery profit recognion is sed). Ignore interest charges 2. Repeat requirement 1 asuming that Apex cannot make a reliable estimate of possible uncollecible amounts and decides to use the IFRS method for significant uncertainty in collectibility. E 5-9 Real estate sales gain recognition LO1 LO3 LO8 3. Repeat requirement 1 assuming that Apex cannot make a reliable estimate of possible uncollectible amounts and decides to use the installment sales method for profit recognition