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devry ACCT 304 Week 4 Quiz




Question;1. (TCO 5) Slick's Used Cars sells pre-owned cars on an installment;basis and carries its own notes because its customers typically cannot;qualify for a bank loan. Default rates tend to be high or unpredictable.;However, in the event of nonpayment, Slick's can usually repossess the;cars without loss. The revenue method Slick would use is the;2. (TCO 5) On December 15, 2011, Rigsby Sales Co. sold a tract of land;that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the;installment sale method of accounting for this transaction. Terms called;for a down payment of $500,000 with the balance in two equal annual;installments, payable on December 15, 2012 and December 15, 2013. Ignore;interest charges. Rigsby has a December 31 year-end.;In 2012, Rigsby would recognize the realized gross profit of;3. (TCO 6) Present and future value tables of $1 at 3% are presented below;Carol wants to invest money in a 6% CD account that compounds;semiannually. Carol would like the account to have a balance of $50,000 5;years from now. How much must Carol deposit to accomplish her goal?;4. (TCO 6) Sondra deposits $2,000 in an IRA account on April 15, 2011.;Assume the account will earn 3% annually. If she repeats this for the;next 9 years, how much will she have on deposit on April 14, 2020?;5. (TCO 6) Micro Brewery borrows $300,000 to be paid off in 3 years.;The loan payments are semiannual, with the first payment due in 6;months, and interest is at 6%. What is the amount of each payment?


Paper#39208 | Written in 18-Jul-2015

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