Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 6011000 1811000 1536000 Crane Corporation uses information is available: Costs to date:
Q: Novak Corporation obtained a franchise from Windsor Inc. for a cash payment of $105,600 on April 1,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: By using Accounting Equation, find out the effect on Assets, Liabilities and Capital of Priyam Garg…
A: It is believed that the accounting equation is the foundation of the double-entry accounting system.…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting…
A: Relevant cost is the cost which is avoidable and differs between the two alternatives. If the cost…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Manufacturing Margin: It refers to the difference between the sales revenue earned and the…
Q: Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $40 million, 10%…
A: Process of Journalizing -Journalizing is the process of recording financial information in the form…
Q: Edwin Parts, a job shop, recorded the following transactions in May: 1. Purchased $87,200 in…
A: Answer:- In an organization's accounting system, a journal entry records a business transaction. The…
Q: A machine costing $216,600 with a four-year life and an estimated $19,000 salvage value is installed…
A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…
Q: -6 nt Cash Accounts receivable Supplies Equipment Accumulated depreciation: equipment Accounts…
A: Financial statement means statement which shows the financial position as on date and financial…
Q: Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit…
A: The manufacturing cost indicates the total indirect cost incurred to produce the cost. These costs…
Q: 1. Checking 2. Utilities Account 3. Prepaid Expenses: Insurance 4. Prepaid Expenses: Supplies 5.…
A: TRAIL BALANCE Trail Balance is the Summary Statement of Credit & Debit Balances of All Ledgers.…
Q: Question Content Area Effect of Doubtful Accounts on Net Income During its first year of operations,…
A: Direct write-off method is method in which uncollectible accounts receivable will be written off as…
Q: JWS Transport Company's employees earn vacation time at the rate of 1 hour per 40-hour work period.…
A: Accrued vacation pay represents the amount of paid time off that employees have earned but have not…
Q: Problem 2-26 (Algo) (LO 2-5, 2-6a, 2-6b, 2-8) On May 1, Soriano Company reported the following…
A: Journal entry : Method of recording financial transactions in the book of original entry by debiting…
Q: eremy (unmarried) earned $100, 500 in salary and $6,050 in interest income during the year. Jeremy's…
A: Answer:-Tax Refund:- Any payment made to a person for excess taxes paid to either the state or the…
Q: $36,298 Calculate ending inventory and cost of goods sold for the year, assuming the company uses…
A: Inventory valuation is based on the flow-through issue used by the organization. It can be the first…
Q: Harwood Company's Job-order costing system applies overhead cost to jobs based on its machine-hours.…
A: Introduction:In Every type of Accounts the left side of T Account is the debit side and the right…
Q: What are the effects on the accounting equation from an adjusting entry for revenues earned, but not…
A: Accounting equation is a mathematical equation that shows relationship between assets, liabilities…
Q: Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you Please repost…
Q: Stacks manufactures two different models of hockey sticks: the Standard and the Slap Shot. The total…
A: The predetermined overhead rate is the rate determined for the purpose of computing the estimated…
Q: Earlyrain Inc.'s 2023 income statement, excluding the earnings per share portion of the statement,…
A: Earnings per share is a calculation that shows the earnings available to the company's shareholders.…
Q: EA 6. LO 10.2 Akira Company had the following transactions for the month. Beginning inventory…
A: inventories valuation techniques are used to calculate the cost of products sold as well as the…
Q: c. and d. Enter a credit balance of $38,400 as of September 1, 20Y4 in the Accounts Payable general…
A: Ledgers - After recording transactions in the journal the next step is to transfer them into…
Q: A company produces wooden tables. The company has fixed costs of $1600, and it costs an additional…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: Problem 14-8 (Algo) Bonds; effective interest; partial period interest; financial statement effects…
A: The bonds are issued to raise money. It requires periodic interest payment in cash. The bonds are…
Q: Harris Company manufactures and sells a single product. A partially completed schedule of the…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Hawk Corp's trial balance reflected the following account balances at December 31, 20X1: Accounts…
A: Balance sheet is a financial statement that shows a list of the final ending balance of assets,…
Q: Perez Company acquires an ore mine at a cost of $3,360,000. It incurs additional costs of $940,800…
A: DEPLETIONThis Method is Specially Suited to Mines, Oil Wells, Quarries, Sandpits and Similar Assets…
Q: (a) Prepare the entries to record these transactions. (If no entry is required, select "No entry"…
A: The journal entries are prepared to record the transactions on a regular basis. The dividend is…
Q: McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Exercise 4-9 (Algo) Calculate the balance of cash using a bank reconciliation (LO4-5) Jackman…
A: Bank reconciliation statement is prepared by the management at a particular time period. It helps…
Q: Cost of Goods Manufactured and Cost of Goods Sold For each of the following unrelated companies,…
A: The cost of goods manufactured refers to the total cost that a company incurs for manufacturing the…
Q: Lina purchased a new car for use in her business during 2023. The auto was the only business asset…
A: Depreciation is the gradual reduction in the value of the asset over its useful life. The reduction…
Q: Marigold Corporation issued 340 shares of $10 par value common stock and 102 shares of $50 par value…
A: The journal entries are prepared to keep the record of transactions on regular basis. The shares…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Orlando Packaging Company purchased a patent on a box-folding machine for $160,000 on July 1, 2012.…
A: An impairment loss occurs when the recoverable amount of an asset falls below its carrying…
Q: Mary Phelps owns 2,000 of the 100,000 shares of Mega Corporation. By purchasing a minimum of. the…
A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…
Q: Arden Books Limited is considering the acquisition of a bookbinding company to expand the publishing…
A: Ratio analysis is one of the important techniques of management accounting.. Accounts receivable…
Q: On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in…
A: Translation is the process through which the financial statements of a foreign subsidiary are…
Q: The records of Biloxi Corp. for calendar 2023 reflected the following correct pre- tax amounts: gain…
A: Answer:- Retained earnings meaning:- The total net earnings or profits of a firm that have been held…
Q: Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a…
A: As per Federal Tax Laws, an individual's inquiry expenses can be deducted over a period of 180…
Q: Mady Entertainment Inc. showed the following equity account balances on the December 31, 2022,…
A: A journal entry is a formal record of financial transactions in accounting. It is the first step in…
Q: Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored…
A: Journal entries are the accounting system process that records the day-to-day business related…
Q: Required information [The following information applies to the questions displayed below.] Jorgansen…
A: Under absorption costing, fixed manufacturing overhead is all taken into account to determine the…
Q: Prepare the journal entries, closing entries, and a Statement of Revenues, Expenses, and Changes in…
A: (A)Journal entry as of 2020,DateAccountDrCr Cash$96,500 operating revenue $96,500(being cash…
Q: Prepare the current liabilities section of the balance sheet.
A: The current liabilities are company's short term financial obligations that are due within one year.
Q: [The following information applies to the questions displayed below.] A company began January with…
A: Lets understand the basics.Inventory and cost of goods sold can be calculated using,(1) FIFO(2)…
Q: Compute the correct December 31 Inventory The accounting records of Larkspur Electronics show the…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales…
A: Contribution per unit = Sale Price per unit (-) Variable cost per unitBreakeven point: The point at…
Q: Given the following account balances after closing entries are posted, what is the total credit…
A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…
Step by step
Solved in 3 steps with 3 images
- Cullumber Construction Co. uses the percentage-of-completion method. In 2024, Cullumber began work on a contract for $23200000; it was completed in 2025. The following cost data pertain to this contract: Year Ended December 31 2024 2025 Cost incurred during the year $8736000 $5720000 Estimated costs to complete at the end of year 5824000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is ○ $3456000. ○ $8744000. $2920000. $3560000.Blossom Construction Company uses the percentage-of-completion method of accounting. In 2021, Blossom began work on a contract it had received which provided for a contract price of $47500000. Other details follow: 2021 Costs incurred during the year $22000000 Estimated costs to complete as of December 31 16000000 Billings during the year 21500000 Collections during the year 10500000 What should be the gross profit recognized in 2021?Crane Construction Co. uses the percentage-of-completion method. In 2021, Crane began work on a contract for $24475000; it was completed in 2022. The following cost data pertain to this contract: Year Ended December 31 2021 2022 Cost incurred during the year $8350000 $6150000 Estimated costs to complete at the end of year 5739000 If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be 2021 2022 $9975000. $(411000). $0. $10386000. $10386000. $0. $0. $9975000. O O
- Widjaja Company is accounting for a long-term construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Instructions a. What theoretical justification is there for Widjaja Company's use of the percentage-of-completion method? b. How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements. c. How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion? d. What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000Newmarket's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is $27 million. This includes $8 million for a consignment of goods sold on 31 December 20X9 on which Newmarket will incur ongoing service and support costs for two years after the sale. The supply of the goods and the provision of service and support are separate performance obligations under the terms of IFRS 15 Revenue from contracts with customers. The cost of providing service and support is estimated at $800,000 per annum. Newmarket applies a 30% mark-up to all service costs. At what amount should revenue be shown in the statement of profit or loss of Newmarket for the year ended 31 December 20X9? (Ignore the time value of money.)
- PT ABC uses the percentage-of-completion method of accounting. In 2018, ABC began work on a contract it had received which provided for a contract price of Rp37.500.000. Other details are provided below. What should be the gross profit recognized in 2018? * 2018 Costs incurred during the year Estimated costs to complete as of December 31 Billings during the year Collections during the year Rp18.000.000 12.000.000 16.500.000 9.500.000 Rp4.500.000 Rp7.500.000 Rp19.500.000 O Rp1.500.000In 20x1, ABC Co. enters into a contract to construct a building for a customer. ABC identifies its performance obligation to be satisfied over time. ABC measures its progress on the contract based on costs incurred. The contract price is P20,000,000. ABC has an unconditional right to all billings made in accordance with the billing schedule stated in the contract. Information on the construction is as follows: 20x1 20x2 Contract costs incurred per year Billings per year Collections on billings 20x3 8,160,000 7,320,000 1,920,000 10,000,000 7,000,000 3,000,000 9,500,000 6,650,000 3,850,000 per year Estimated costs to 1911 complete (at each year-end)er from the Student Ha8,840,000 of 1,720,000 "Cheating during examinations, quizzes or plagiarism in connection with any academic work, abetting of the same: 1st violation- How much profit is recognized on the contract in 20x3? suspension with invalidation of grade; 3rd violation- suspensionRice Corp. recognizes revenue over time to account for long-term contracts and has the following information for the first year of the contract: Contract price Total expected costs on contract Costs incurred in current year Costs incurred in previous years $500,000 A.) $100,000 B.) $500,000 C.) $60,000 D.) $75,000 400,000 60,000 What is the amount of revenue recognized in year 1?
- Sheridan Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.8 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. 2023 Costs to date $850,000 Estimated costs to complete 1,650,000 Progress billings to date (non-refundable) 924,000 Cash collected to date 750,000 2024 $1,782,550 532,450 2,296,000 2,157,000 2025 $2,346,000 0 2,800,000 2,800,000Roe Construction Company uses the percentage-of-completion method of accounting. In 2021, Roe began work on a contract it had received which provided for a contract price of $15,000,000. Other details follow: 2021 Costs incurred during the year $7,200,000 Estimated costs to complete as of December 31 4,800,000 Billings during the year 6,600,000 Collections during the year 3,900,000 What should be the gross profit recognized in 2021?Lark Corp. appropriately determined that each of its long-term projects represents a single performance obligation that is satisfied over time. At the end of the current year, Lark estimates that its costs to complete a project exceed the contract price, so that an overall loss on the contract is anticipated. Required: What journal entry will Lark record at the end of the current year, given the following information? • Revenue to date is $350,000 ($175,000 of which is to be recognized in the current year). • The expense recognized previously was $100,000. • An overall loss of $30,000 is anticipated