ACC 304 WEEK 4 QUIZ

 1.	Question :	(TCO 5) For a typical manufacturing company, the most common critical point for recognizing revenue is the date

 	

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

 	

 	


Question 3.	Question :	(TCO 6) Present and future value tables of $1 at 3% are presented below:
 
Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 4 years from now. How much must Shane deposit to accomplish his goal?

 	


Question 4.	Question :	(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?

 	
 	



Question 5.	Question :	(TCO 6) A firm leases equipment under a capital lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at inception of the lease?