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Leto [7]
3 years ago
5

On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,500,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $450,000 with the balance in two equal annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end. In 2022, Rigsby would recognize realized gross profit of:
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

In 2022, Rigs-by gross profit=$682,500

Explanation:

Profit=Price at which land is sold- Actual price of land

Profit=$5,000,000- $3,500,000

Profit=$1,500,000

Gross Profit=Profit/Price at which land is sold

Gross Profit=$1,500,000/$5,000,000

Gross Profit=0.3=30%

In 2022, Rigs-by gross profit=Gross\ Profit*\frac{Price\ at\ which\ land\ is\ sold\ -\ down\ payment }{2}

In 2022, Rigs-by gross profit=0.3*\frac{\$5,000,000-\$450,000}{2}

In 2022, Rigs-by gross profit=$682,500

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Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if t
sleet_krkn [62]

Answer:

C. when they are incurred, whether or not cash is paid.

Explanation:

In accrual accounting, expenses are recorded in the moment they are incurred, even if they have not been paid for.

In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

One common example of an accrued expense is accrued wages:

Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.

4 0
3 years ago
The following transactions were selected from the records of OceanView Company:
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Answer:

$19,380

Explanation:

The computation of the net sales for the two months is shown below:

= Sale value of merchandise as on July 12 + Sale value of merchandise  as on June 15 +  Sale value of merchandise  as on July 20 - sales discounts from July 15 sale

= $3,500 + $10,500 + $5,800 - $10,500 × 4%

= $3,500 + $10,500 + $5,800 - $420

= $19,380

Since the payment is collected on June 23 i.e within 10 days so it is eligible for sales discounts

And from July 20 sale no sales discounts is eligible as it is exceeded than 10 days  

3 0
3 years ago
If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc
Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
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Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not requi
Verizon [17]

Answer:

The correct answer is C) Employment-at-will

Explanation:

Under the employment-at-will doctrine, employers can dismiss an employee for any reason as long as the reason is not illegal (for example, firing someone because of his race or sex, which would be illegal discrimination), and employees can leave the job at anytime at will. Under this doctrine, if you do not want to keep working, you just stop going to your job.

The benefit of this doctrine is that it gives more labor flexibility and avoids the existence of lawsuits. The con of this doctrine is that it reduces labor protections.

6 0
3 years ago
is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint. a.
Leto [7]

Answer:

e. All of the above are inputs required for capital budgeting analysis.

Explanation:

All of the given parameters are inputs required for capital budgeting analysis. is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint.

a. Salvage value

Salvage value is the estimated resale value of an asset at the end of its useful life. It is an applicable cashflow in investment appraisal

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This is the parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal

c. Initial investment

This is the amount that is first spent on capital acquisition of machinery or construction, it is a cashflow in year 0, of investment appraisal

d. Consumer demand

This is the another parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal

3 0
3 years ago
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