It is a practice common probably throughout the United States, for owners of real estate, especially corporations whose business it is to buy, develop, and dispose of real estate, to sell their property under some form of agreement, which for the sake of brevity we will call a "contract." The subject of contracts is more fully discussed in Chapter XVII (Time Sales - Contracts. Section 122. Simple Form Of Contract). In a great majority of cases, the first payment is small, and the contract may carry with it no obligation on the part of the purchaser to complete the purchase. In such an instance, the general procedure is the same as in the case of mortgages on which a small payment has been made. The journal entry would be in the following form:

Contracts ................................

$......

To Real Estate ............................

$......

" Gain on Sales ..........................