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devry acc304 week 4 quiz

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Question;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;installment sales method.;point of sales method.;cost recovery method.;Both A and C are correct.;Question 2. Question;(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;$0.;$450,000.;$300,000.;$400,000.;Question 3. Question;(TCO 6) Present and future value tables of $1 at 3% are;presented below;Today, Thomas deposited $100,000 in a 3-year, 12% CD that;compounds quarterly. What is the maturity value of the CD?;$109,270;$119,410;$142,576;$309,090;Question 4. Question;(TCO 6) At the end of each quarter, Patti deposits $500 into;an account that pays 12% interest compounded quarterly. How much will Patti;have in the account in 3 years?;$7,096;$7,213;$7,129;$8,880;Question 5. Question;(TCO 6) Jose wants to cash in his winning lottery ticket. He;can either receive five, $5,000 annual payments starting today, or he can;receive a lump-sum payment now based on a 3% annual interest rate. What is the;present value of the installments if he opts for the lump sum payment?;$23,586;$22,899;$21,565;$23,000

 

Paper#40371 | Written in 18-Jul-2015

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