III. Stackum and Buildum Construction Co. received a contract for $6,500,000 to build an addition to Gama's manufacturing facility. The contract starts in January of 2020 and is complete by December of 2022. The following data was accumulated during the life of the contract:
Q: XYZ Partnership with partners X, Y and Z decided to liquidate. At the date of liquidation, the…
A: Liquidation of Partnership Firm: The process by which a connection between partners in a business is…
Q: On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and…
A: The amount of cash to be presented on partnership statement of financial positionby DAVE should be…
Q: Background information: Campbell Inc., a retailer, began operations on October 1, 2022, and entered…
A:
Q: Requirements 1. and 2. Calculate and enter the adjustment amounts directly in the Adjustments…
A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…
Q: Bridget Cheungis getting ready to open a small restaurant. She is on a tight budget and must choose…
A: A budget refers to the statement that the organizations, individuals, and the government prepare…
Q: Grape Corp.. compiled the following financial information as of December 31, 2018 (in absolute…
A: The assets are listed in the accounting records and can be seen on the company's balance sheet.…
Q: The accounting firm Seaver & Co. prepares its own financial statements at the end of each year.…
A: Adjusting entries are those journal entries which are passed at the end of the period for the…
Q: For the year ended December 31, 2021, White Company reported pretax financial income of P5,000,000,…
A: Solution: Temporary differences that results into future taxable amount creates deferred tax…
Q: Lee & Lim Company performed accounting services on account for P15,000. The transaction will…
A: Company performing any kind of service and/or providing any kind of goods generates revenues from…
Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $130 million of 8% bonds, dated…
A: BOND Bond Is a Security which is Issued by the Companies and Government to generate fund for…
Q: Robertson and Lloyd are partners. Their capital accounts during 2020 were as follows: Robertson…
A: A partnership is a business relationship among two or more persons to share profits and losses of…
Q: In December, a company was calculating the predetermined factory overhead rate for the upcoming…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: On July 1, 2021, X, Y and Z formed a partnership with X as an industrial partner, Y and Z…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: Dorothy Dorothy is a cash basis taxpayer and self-employed guitar instructor all of the following…
A: Cash Basis Taxpayer A taxpayer who records their income and deductions on a cash basis does so in…
Q: Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: The following questions relate to the apparent divergence in view between the standard setters and…
A: Historical cost takes into account the item's original price at the time and place of purchase. In…
Q: One of Susan's favorite things in the whole world is her grandma's banana bread. Susan has become so…
A: Lets understand the basics. When there is scare of resources and more than one alternatives…
Q: Suppose this information is available for PepsiCo, Inc. for 2025, 2024, and 2023. (in millions)…
A: Days in Inventory - Days in Inventory ratios show the time required to sell the inventory lying in…
Q: XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization…
A: Contributed capital also referred to as the paid-in capital is the amount that indicates the money…
Q: A) Can the government tax its own agencies or instrumentalities? Explain.
A: Introduction An organization established by or in accordance with a state legislation and run for…
Q: On July 1, 2021, Blue Company signed an agreement to operate as a franchisee for a franchise fee of…
A: Cost of franchise acquired is the present value of all payments made for franchise. It means down…
Q: hy should emission allowance be recognised as an intangible asset and measured at f
A: Intangible assets are those which do not have any kind of physical existence and but they still have…
Q: If total assets increased by P175,000 during a specific period and liabilities decreased by P10,000…
A: According to the given question, we are required to give the solution. We can solve this question…
Q: Valdosta Company is working on its costing information for January. Using normal costing, they use…
A: Prime Cost: Prime cost includes direct expenses related to the Manufacturing of goods. Major…
Q: Raw Materials Inventory Debit Credit 46,400 25,650 9,400 Work in Process Inventory Debit Credit…
A: When the actual overhead is deducted from the applied overhead and the amount so obtained is…
Q: subscription default assuming 1,500 shares out of the 7,000 shares were unable to pay the last…
A: •Share holders a/c dr 2,31,000 To share capital a/c 2,31,000
Q: Question 1a A contract is under consideration that requires 600 labour hours to complete. There are…
A: Relevant cost is the cost which is relevant in decision making that is whether or not to accept the…
Q: What is the difference between a conceptual framework and accounting standards ?
A: Standards: These are defined as the measurement criteria or benchmarks that are established for…
Q: The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share 2,000…
A: Introduction: Generally companies issues two types of shares - Preference shares and common shares.…
Q: During 2019, Namnama Company introduced a new product carrying a two-year warranty against defects…
A: Lets understatnd the basics. Warranty expense needs to be recorded on accrual basis. In accrual…
Q: The ABC Corp. was organized on September 1. 2022. with authorized capital of 1,000,000 shares of P50…
A: Dividend - Dividend is the amount of money distributed to the shareholders of the company. Dividend…
Q: The computer workstation furniture manufacturing that Santana Rey started is progressing well. As of…
A: >There are two methods of cost accumulation: #1: Process Costing, where each process has its…
Q: Kay Wing, Inc., prepared the following balance sheet at December 31, 20X0. Kay Wing, Inc.…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Consider the following liabilities of Future Brands, Inc., at December 31, 2021, the company's…
A: Q1. The note is classified as Long-term liabilities as the same is payable after12 months though…
Q: Abel, Ben, and Carol form New General Partnership at the beginning of the current year. Abel and Ben…
A: Calculation of net partnership income for the year end: Particulars Amount Sales Revenue…
Q: seeking penalties settlement with state authorities to pay $1.6 million in pen 1 milion lawsuit…
A: Journal entries are those entries that are stated in the books of accounts of a company regarding…
Q: X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively,…
A: Partnership Account - A partnership is a mutual agreement enter into two or more entities for the…
Q: * Your answer is incorrect. Calculate the inventory turnover for 2023, 2024, and 2025. (Round…
A: Inventory Turnover is the measure of no. of times the inventory is sold during the year. Inventory…
Q: Since overhead costs are indirect costs, Group of answer choices they require some process of…
A: Overhead costs refer to those costs which are not directly attributed to the creation of a product…
Q: eBook Problem Walk-Through Edelman Engines has $15 billion total assets of which cash and…
A: Market value = Stock price x No. of shares = $23 x 500 million = $11,500 million or $11.5 billion…
Q: -- Homework Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing…
A: Fixed cost remains same irrespective of number of units produced Given fixed manufacturing overhead…
Q: What is the most this hardware store can pay per unit for these tools if it wants to move forward…
A: Variable costs are those type of costs which changes along with change in sales volume or activity.…
Q: The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the…
A: Ordinary share capital refers to the amount of money raised by businesses through the sale of their…
Q: Capital balances in the WXY partnership are W, Capital P 60,000, X Capital P 50,000 and Y Capital…
A: Solution A partnership is an agreement in which two or more partners agreed to carry on business and…
Q: If the work in process inventory balance decreased by $3,200 during the period and the total…
A: The cost of goods manufactured includes the total cost of goods that are finished during the period.…
Q: What are de minimis fringe benefits?
A: Fringe benefits is something which is given to employees by their employers in addition to their…
Q: (a) (b) c) (d) (e) The following list of balances was taken from the books of Orange Traders, a…
A: According to the given question, we are required to prepare the income statement and balance sheet.…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On…
A: Balance sheet :— Balance Sheet Provides the financial position of the Company. It is one of the…
Q: Green Corporation began operations in 2021. An analysis of Green’s equity investments portfolio…
A: Unrealized holding loss=Aggregate cost of Non-trading Investments- Aggregate Fair value of…
Q: Assume the following information from a schedule of cost of goods manufactured: Beginning work…
A: The cost of goods manufactured includes the total cost of goods that are finished during the period.…
Please do not give answer in image formate
Step by step
Solved in 2 steps
- On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?Concord Corp. contracted to construct a building for $729000. Construction began in 2023 and was completed in 2024. Data relating to the contract follow: Costs incurred Estimated costs to complete Year Ended December 31 O $112642 and $74358. O $133122 and $53878. O $423000 and $306000. O $0 and $236000. 2023 $306000 202000 2024 $236000 Concord uses the percentage-of-completion method. For the calendar years 2023 and 2024, respectively, Concord should report gross profit ofOn February 1, 2023, Sandhill Contractors agreed to construct a building at a contract price of $3,460,000. The total estimated construction costs would be $1,890,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2023 Gross profit/ (loss) 689,850 1,200,150 1,100,000 1,000,000 2023 2024 573050 $1,162,000 $ 2,365,000 913,000 1,890,000 1,750,000 2025 Calculate the gross profit / (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage complete to 1 decimal place, e.g. 15.2% and final answers to O decimal places, e.g. 5,125.) 2024 -0- 3,460,000 2,950,000 -107450 $ LA 2025 40450
- 4SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract:December 31, 2021December 31, 2022Percentage of completion30%82.5%Estimated cost to complete1,960,000840,0001.What is the total cost incurred in year 2022? 1.What is the total cost incurred in year 2022? A.4,073,750 C. 1,680,000. B.840,000. D. 3,120,000 2.The realized gross profit (loss) in year 2022 is A.650,000. C. (. 245,000) B.405,000 D. (1,055,000) 3.What is the construction cost of sales for year 2022? A.3,960,000. C. 3,233,750 B.3,120,000. D. 4,478,750 4.What is the construction-in-progress as of 2022? A.3,423,750. C. 2,065,000 B.3,310,000. D. 2,470,000On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…
- On February 1, 2023, Magicfort Contractors agreed to construct a building at a contract price of $5,840,000. Magicfort estimated total construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: 2023 2024 2025 Total costs incurred to date Estimated costs to complete $1,512,000 2,520,000 $2,664,000 $4,620,000 1,776,000 -0- Customer billings to date 2,240,000 4,032,000 5,640,000 Collections to date 2,040,000 3,540,000 5,540,000 Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the gross profit that should be reported for 2023, 2024, and 2025. Percentage-of-Completion Gross Profit 2023 2023 Cost-Recovery Gross Profit 2024 $ 2025 $ SA 2024 2025 $The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method a used Given the following December 31 2021 $4.200 6,300 5,100 6,000 2020 2022 $11,650 $2,500 Costs incumed to dute Esbinated costs to compiete Bitingu to date Collections to date 7,600 4.000 3,800 12,000 11,900 The 12/31/21 belance of Construction in Progress is Select one O. $4300 Ob S5040 O $5.000 Od $4200 O $4800Pharoah Construction entered into a contract to construct a bridge for a contract price of $2.95 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract: 2019 2020 2021 Costs incurred during the year $649,000 $836,000 $693,900 Estimated costs to complete 1,427,800 515,000 0 Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.) 2019 2020 2021 Revenue $ $ $ Expenses Gross Profit $ $ $
- On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: Total costs incurred during the year Estimated costs to complete Customer billings to date Collections to date 2020 4,500,000 7,500,000 6,600,000 6,000,000 2021 5,300,000 4,200,000 12,000,000 10,500,000 2022 4,000,000 1,800,000 13,800,000 13,500,000 a. Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. b. Using the cost-recovery method, prepare schedules to compute the profit or loss to be recognized as a result of this contract all the necessary journal entries to record the costs,…SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: December 31, 2021 December 31, 2022 Percentage of completion 30% 82.5% Estimated cost to complete 1,960,000 840,000 1. What is the total cost incurred in year 2022? С. 1,680,000 D. 3,120,000 A. 4,073,750 В. 840,000 2. The realized gross profit (loss) in year 2022 is A. 650,000 B. 405,000 C. (. 245,000) D. (1,055,000) 3. What is the construction cost of sales for year 2022? С. 3,233,750 D. 4,478,750 A. 3,960,000 В. 3,120,000 4. What is the construction-in-progress as of 2022? А. 3,423,750 C. 2,065,000 В. 3,310,000 D. 2,470,000On January 1, 2021. Robredo Co. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2021 12/31/2022 12/31/2023 P 3740000 Costs incurred during the year Realized gross profit/(loss) during the year Percentage of completion as of the end of the year ? ? P750,000 (P250,000) (P800,000) 50% 37.5% ? What is the balance of Construction in Progress on December 31, 2023?