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RideAnS [48]
3 years ago
10

On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $490,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end. In 2019, Rigsby would recognize realized gross profit of:
Business
1 answer:
xxTIMURxx [149]3 years ago
5 0

Answer:

$127,400

Explanation:

Gross profit ratio = [(sale - cost) ÷ sale price] × 100

                           = [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100

                          = 0.26 × 100

                          = 26%.

Gross profit on down payment is recognized in 2019:

= Down payment × Gross profit ratio

= $490,000 × 26%

= $127,400

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MrRissso [65]

Answer:

$30,000

Explanation:

Lara Technologies could invest the 250,000 in exchange of a 12% return, therefore, the opportunity cost would be:

$250,000 x 12% = $30,000

$30,000 dollars in returns is what Lara Technologies would give up if it purchased the land instead of investing the money.

6 0
3 years ago
On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year.
masha68 [24]

Answer:

The answer is: Montana should recognize its revenue equally throughout the year as they provide their services.

Explanation:

The accrual basis of accounting recognizes revenue when earned. This means that Montana Corporation should recognize revenue when its service has been performed, regardless of when those services were paid. That means they should recognize revenue equally throughout the year (every month) as they provide their services.

8 0
3 years ago
Most colleges and universities have a campus activity board that brings entertainers and special events to campuses. To locate a
Ratling [72]

Answer:

(C)

Explanation:

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In this case, the college entertainers offered an incentive or reward (premiums) to the people who came to see them perform.

The shirts would encourage the people who came to see them perform to be present some other time.

For example, a grocery store may give free sweets to children who accompany their parents to the store.

3 0
3 years ago
Jung Hwa was recently married on July 1, 2018. She had worked for the organization for the past eight years and has been covered
lys-0071 [83]
Now that’s what she should do but if she doesn’t what to then oh whale
6 0
3 years ago
LO 1.3The Certified Management Accountant (CMA) certification:
Bezzdna [24]

Answer:

includes a two-part exam, education requirements, and a work experience requirement

Explanation:

The CMA certification requires a minimum of a bachelor's degree, at least a two year work experience and passing a two part exam with at least 50%.

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I hope my answer helps you.

8 0
3 years ago
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