Rigsby appropriately uses the installment sale method

Assignment Help Accounting Basics
Reference no: EM131026444

On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $480,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end.  

Realized gross profit of $480,000.
Cost of installment sales $1,672,400.
Deferred gross profit of $587,600.
Realized gross profit of $587,600. 

Reference no: EM131026444

Questions Cloud

Customers pay one-third of the sales price : Lake Power Sports sells jet skis and other powered recreational equipment.
Briefly analyze the role of the fasb specific : In your analysis and summary, consider the stakeholder groups that benefit from not-for-profit standards and how they might engage the FASB process.
Determine the quantities needed to make 5 litres of grout : using this information determine the quantities needed to make 5 litres of grout with a density of 2.000kg/litre
Interpret the main effects of drug and of dose : Based on your results in part (a), is it sensible to examine and interpret the main effects of drug and of dose?
Rigsby appropriately uses the installment sale method : On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the installment sale method of accounting for this transaction.
Describe the life cycle of chlamydia : Rocky mountain spotted fever RMSF is the most important rickettsiosis in the US, what is the major tissue affected in RMSF, and what is the inflammation called -what is the vector for this disease .
At what rate should the money supply grow : According to the quantity theory of money with fixed V, if the goal of the central bank is to have an inflation rate of 0, at what rate should the money supply grow
Record the transactions in the t accounts : The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate.
What are major differences between bipolar i and bipolar ii : What are the major differences between Bipolar I, Bipolar II and Cyclothymia? In other words, if you had a client sitting infront of you with one of these disorders, how would you tell which one?

Reviews

Write a Review

Accounting Basics Questions & Answers

  On january 1 2012 fishbone corporation sold a building that

on january 1 2012 fishbone corporation sold a building that cost 272200 and that had accumulated depreciation of 102100

  The book value of bullen''s accounts

Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2013. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts

  In order to help out the ceo you need to prepare a six- to

youve just been hired onto abc company as the corporate controller. abc company is a manufacturing firm that

  Calculate the amount of liabilities for company

The following financial statement information is from five separate companies.

  Barker company has a single product called a zet the

barker company has a single product called a zet. the company normally produces and sells 80000 zets each year at a

  Show the division on net income

The partnership agreement calls for a 15% interest on their capital accounts and the remaining sum to be shared equally. Net income for the year is $30,000. Show the division on net income.

  Combined federal and state tax bracket

An investor recently purchased a corporate bond that yields 9.3%. The investor is in the 31% combined federal and state tax bracket. What is the bond's after-tax yield?

  What is callable preferred stock why do corporations issue

what is callable preferred stock? why do corporations issue such stock? given the different features that are

  Ace inc produces electronic components for sale to

ace inc. produces electronic components for sale to manufacturers of radios television sets and digital sound systems.

  Average accumulated expenditures problem

Messersmith Company is constructing a building. Construction began in 2010 and the building was completed 12/31/10. Messersmith made payments to the construction company of $1,000,000 on 7/1, $2,100,000 on 9/1, and $2,000,000 on 12/31. Average acc..

  Corky motors is in its first year of operations and as of

corky motors is in its first year of operations and as of december 30 has total revenues of 5 million projected net

  How accounts receivables and cash go together

how accounts receivables and cash go together. Beyond just cash showing when funds are collected how is the timing of receivables different than the timing of cash and how can the company make sure they are on top of collecting the funds due them.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd