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Sider Inc., a registered broker, enters into a finder s fee agreement with HOM Homes Ltd . on June 1 5 , 2 0 2
Sider Inc., a registered broker, enters into a finders fee agreement with HOM Homes Ltd on June Sider will find leads in the form of buyers potentially interested in purchasing HOMs real estate holdings. Along with finding potential buyers, Sider helps negotiate the selling price and provides advice on contract details. If and when HOM closes a sale, Sider will be paid within days of the closing date, based on the following formula: of any transaction value up to and including $ million, plus of any transaction value greater than $ million and less than and including $ million, plus of any transaction value greater than $ million and less than and including $ million, plus of any transaction value greater than $ million and less than and including $ million, plus of any transaction value in excess of $ million. If Sider uses another broker and this information is not shared with HOM, the fee is reduced by On September HOM paid Sider $ to provide some needed cash flow for seeking out buyers. On October an offer was made and accepted for a parcel of real estate at a price of $ million. The transaction closed on November and Sider was paid the finders fee net of $ on November
Determine the accounting treatment of the above events for Sider Inc. and prepare any journal entries needed on: Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all debit entries before credit entries.
a June
b September
c October
d November
e November
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