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question on december 15 2013 rigsby sales co sold a tract of land thatcost 3600000 f 4293302

Question

on december 15,2013, Rigsby Sales Co. sold a tract of land thatcost $3600000 for $4500000. Rigsby appropriately uses theinstallment sale method of accounting for this transaction. Termscalled for a down payment of $500000 with the balance in two equalannual installments payable on December 15,2014, and December15,2015. Ignore interest charges. Rigsby has a December31year-end

Q1: in 2013, Rigsby would recognize realized gross profitsof

Q2: in 2014, Rigsby would recognize realized gross profitsof

Q3: In its December 31, 2013, balance sheet, Rigsby wouldreport:

A Realized gross profit of $100000

B: Deferred gross profit of $100000

C: Installment receivables(net) of $3200000

D: Installment receivables(net) of $4000000

Q4: At Dec 31,2014, Rigsby would report in its balancesheet:

A: Realized gross profit of $500000

B: Deferred gross profit of $400000

C:Realized gross profit of $400000

D: Cost of installment sales $1600000

 

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