On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,200,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $460,000 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 its December 31, 2018, balance sheet, Rigsby would report:
Installment receivables (net) of $2,905,600.
Realized gross profit of $165,600.
Installment receivables (net) of $4,540,000.
Deferred gross profit of $165,600.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,200,000 for $5,000,000. Rigsby appropriately uses the installment ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Athena Company's salaried employees earn two weeks of vacation per year. It pays $816,400 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
Answers (1)
Country X is a major buyer of Country Y's grains. Assume Country X's government announced an increase in taxes on its imports of Country Y's grains effective next month. How will this news likely affect consumers' demand for grains in Country X? A.
Answers (2)
The expense recognition principle ("matching") dictates: a) The ordering of current assets and current liabilities on the balance sheet. b) When costs are recognized as expenses on the income statement.
Answers (1)
The yoga class meets twice a week. On Tuesdays, the ratio of men to women is 1:6. On Thursdays, the ratio of men to women is 2:11. On which day the ratio of women higher at the yoga class?
Answers (1)
Your firm has a total revenue of $1,000, a total cost of $1,500 and a variable cost of $500. What does this tell us about your profits and whether or not you should operate or shut down
Answers (1)
New Questions in Business
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Emma notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50.
Answers (1)
A not-for-profit nursing home has total expense of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and other miscellaneous not subject to tax ($2 million).
Answers (1)
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?
Answers (1)
Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000.
Answers (1)
Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73,000 to invest.
Answers (2)