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coldgirl [10]
4 years ago
8

On december 15,2013, Rigsby Sales Co. sold a tract of land that cost $3600000 for $4500000. Rigsby appropriately uses the instal

lment sale method of accounting for this transaction. Terms called for a down payment of $500000 with the balance in two equal annual installments payable on December 15,2014, and December 15,2015. Ignore interest charges. Rigsby has a December31 year-end
Q1: in 2013, Rigsby would recognize realized gross profits of

Q2: in 2014, Rigsby would recognize realized gross profits of

Q3: In its December 31, 2013, balance sheet, Rigsby would report:

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 balance sheet:

A: Realized gross profit of $500000

B: Deferred gross profit of $400000

C:Realized gross profit of $400000

D: Cost of installment sales $1600000
Business
1 answer:
nika2105 [10]4 years ago
4 0

Answer:

Rigsby would recognize realized gross profit of:

Q1: in 2013, Rigsby would recognize realized gross profits of

A Realized gross profit of $100000

Explanation:

The installment method is an approach to revenue recognition in which the business owner defers gross profit on a sale until receiving cash for the sale from the buyer.

Gross profit % = ($4,500,000 - 3,600,000)/$4,500,000 = 20%

2013: 20% x $500,000 = $100,000

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Answer:

C) Business marketing

Explanation:

There are two major types of business transactions: business to business (B2B) and business to consumers (B2C).

When a company engages in B2B transactions, they are selling their products or services to another business or individual that will resell them to individual consumers. For example, Nike sells shoes to Foot Locker, and then Foot Locker resells them to final consumers.

Businesses engaged in B2B transactions use specific marketing strategies aimed at their wholesale clients which usually vary from marketing strategies aimed at final consumers, e.g. offer discounts for buying in bulk.

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4 years ago
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Hey, I'm reading a book and I want to know what this question mean.
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Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm p
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Assume Mercy Hospital underestimated the provision for bad debts and contractual adjustments reported on its December 31, 2015 i
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3 years ago
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
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Answer:

Amount of underapplied or overapplied overhead cost for the year

$97000 - Underapplied

Schedule of cost of goods manufactured for the year

Direct Material                                3885000

Direct Labor                                      60000

Overheads                                       376000

Total Manufacturing Costs             4321000

Add Opening Inventory WIP           400000

Less Closing Inventory WIP            (700000)

Cost of Goods Manufactured         4021000

Explanation:

Amount of underapplied or overapplied overhead cost for the year

Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead

$473000-$376000= $ 97000

Schedule of cost of goods manufactured for the year

<em>Direct Materials  Calculation  </em>                                  

Opening                                                      200000

Add Purchases                                         4000000

Available                                                    4200000

Less Closing Material                                 300000

Materials Consumed                                  3900000

Less Indirect Materials                                 15000

Direct Materials Consumed                       3885000

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