User Account

All Pages

Calculate the amount of gross profit to be recognized

Assignment Help Accounting Basics
Reference no: EM133093168

Question - During 2020, Sheridan Company started a construction job with a contract price of $1,376,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

 

2020

2021

2022

Costs incurred to date

$344,000

$709,500

$920,200

Estimated costs to complete

516,000

236,500

0

Billings to date (non-refundable)

258,000

774,000

1,376,000

Collections to date

232,200

696,600

1,225,500

Required -

A. Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

B. Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.)

C. Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

Reference no: EM133093168

Questions Cloud

Compute the consolidated gain or loss : On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. Compute the consolidated gain or loss on a consolidated income statement for at the end
What is the cash conversion cycle for a firm : What is the cash conversion cycle for a firm with $3 million inventory, $2.5 million accounts payable, an accounts receivable period of 35 days
Napster and music industry or tiktok vs thriller : Please find any interesting intellectual property case like the "Napster and Music industry" or "TikTok vs Thriller" case and give me another sample and explana
What should be the basic earnings per share for the year : What should be the basic earnings per share for the year ended December 31, 2021, rounded to the nearest penny
Calculate the amount of gross profit to be recognized : Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used
Calculate anticipated cash receipts from sales in january : Total expected sales in January: $160,000 of which 25% is cash sales and the balance on account. Calculate anticipated cash receipts from sales in January
What is the amount of depletion per ton : Vaughn Manufacturing acquires a coal mine at a cost of $1920000. Intangible development costs total $354000. What is the amount of depletion per ton
What are relevant costs and benefits of this special order : Costa's production capacity is 140,000 units per year but can only sell 120,000 units to regular customers. What are relevant costs and benefits
What amount should tolvin report as capitalized interest : Tolvin borrowed $20,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 7%. What amount Tolvin report as capitalized interest

Reviews

Write a Review

Accounting Basics Questions & Answers

  A company issues 20000000 78 20-year bonds to yield 8 on

a company issues 20000000 7.8 20-year bonds to yield 8 on january 1 2010. interest is paid on june 30 and december 31.

  Compute the cost of goods transferred out

The Matsui Lubricants plant uses weighted-average method. Compute the cost of goods transferred out and the ending inventory using the weighted-average method.

  Evaluate net of the discount and allowance

Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system. Apr. 2 Purchased merchandise.

  What is the portfolio standard deviation

What is the portfolio's standard deviation? What is the maximum one-month loss of the currency portfolio? State % and US dollars

  Compute the Depletion and Depreciation expense

Mining equipment bought amounted to P850,000. Compute the Depletion and Depreciation expense for each of the first four years. Show computations in good form

  What amount should be recognized as impairment loss

The entity sold the machine for P650,000 on January 5,2020. What amount should be recognized as impairment loss in 2019

  Crumple car rentals is planning to expand into the western

crumple car rentals is planning to expand into the western part of the u.s. and needs to acquire approximately 400

  What is ricky standard deduction for the current year

What is Ricky's filing status? How many exemptions may Ricky claim on his current year tax return. What is Ricky's Taxable Income

  Customers on the afternoon of the party

She sets up a home catering business and immediately agrees to cater for 100 people attending a 21st birthday party for a price of £300. She insists on £100 deposit. As the day for the party approaches, she finds that she has taken on too much wor..

  Problem on straight line method of depreciation

Abbey Ltd purchased machinery on 1 October 2010 for $80 000. The estimated useful life of the machinery is 5 years, with an estimated residual of $5000. The entity's balance date is 30 June, and it uses the straight line method of depreciation. On..

  What is the amount of dividends received

Sunland, Inc. has 4800, $9, noncumulative preferred shares issued at $100, What is the amount of dividends received by the common shareholders in 2021

  What is the likely post-merger bargaining outcome

Pharmaceutical Benefits Managers or PBMs are intermediaries. Now suppose the two drug companies merge. What is the likely post-merger bargaining outcome?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd