Reference no: EM133129729
Question - On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,300,000. During 2021, costs of $2,120,000 were incurred, with estimated costs of $4,120,000 yet to be incurred. Billings of $2,644,000 were sent, and cash collected was $2,370,000.
In 2022, costs incurred were $2,644,000 with remaining costs estimated to be $3,780,000. 2022 billings were $2,894,000, and $2,595,000 cash was collected. The project was completed in 2023 after additional costs of $3,920,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time.
Required -
1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).
2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).
3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021.
3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.
|
Calculate the Cost of Goods Sold for the February
: On February 15th, the Boy Bike Co. sold 44 bikes for $360 each. Calculate the Cost of Goods Sold for the February 15th sale using LIFO
|
|
Explain about accounting ratios
: Select any five of the following accounting ratios and explain fully what information they provide to guide decision-making by the users of financial statements
|
|
What is the total cost of the job
: The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job
|
|
Identify and discuss the various risks and ethical issues
: Identify and discuss the various risks and ethical issues to be considered when launching as well as investing in a start-up
|
|
Calculate the amount of revenue and gross profit or loss
: In 2022, costs incurred were $2,644,000 with remaining costs estimated to be $3,780,000. Calculate the amount of revenue and gross profit or loss
|
|
How should deer report the component operation
: The assets of the component were sold on October 15, 2021 at a loss of P100,000. How should Deer report the component's operation for 2021
|
|
Determine the net income for the period amounts
: The 40% cost of sales amounted to P482,000, and the Operating expenses represented 17% of the gross sales. Determine the net income for the period amounts
|
|
Calculate the current, quick and cash ratio
: Selected items from Excellent Company's Statement of Financial Position had balances as follows: Cash 455,000. Calculate the current, quick and cash ratio
|
|
Explain the key concepts of business analysis planning
: Explain the key concepts of business analysis planning and monitoring and explain and relate key concepts and applications of business object modelling
|