Reference no: EM13992373
Low-Rise Office Building
The initial contract was signed on January 5, 2010 in the amount of $1,000,000. This amount included $800,000 for construction costs, $150,000 for overhead mark-up, and $50,000 for profit markup. The contractor broke ground on February 4, 2010. During the course of construction the client decided to upgrade the quality of the lighting and plumbing fixtures, resulting in a change order issued to the contractor in the amount of $100,000 on October 7, 2010. The change order price was calculated by the contractor as follows: $50,000 construction costs, $37,500 overhead markup, $12,500 profit markup.
At the end of 2010, construction was not complete. However, the client was renting out office space to other entities as well as using some of the offices for the client’s own business entity. Work remaining as of December 31, 2010 included surfacing the parking lot, erecting a portable parking attendant’s station, miscellaneous site concrete work and landscaping. This work was schedule to be completed by May 1, 2010, weather permitting.
A summary of accounting data as of December 31, 2010 included total construction costs in the amount of $800,000 for which $600,000 was paid. The balance reflected unpaid bills for the month of December, and retention withheld on subcontracts throughout the course of the project. The total progress billing as of December 31, 2010 was $1,000,000 of which $900,000 was collected with the balance outstanding as retention receivable. The project manager estimated that given the work left to be completed, approximately $200,000 of construction cost would be incurred.
1. Calculate the percent complete for Project 101 for the period ending 12/31/2010. Then, determine the earned revenue and gross profit by applying the percentage of completion method for recognizing revenue.
2. Calculate the revenue and gross profit for Project 101 for the period ending 12/31/2010 by applying the billings method for recognizing revenue. Compare the revenue value with the value when using the percentage of completion method. Comment on the contractor’s billing practice.
|
Organization uses a home-based medical transcriptionist
: Describe one safeguard that should be in place to protect the confidentiality of health information when a health care organization uses a home-based medical transcriptionist and one safeguard that should be in place to protect the security of that h..
|
|
Sharing sound basis for diversification-vertical integration
: What are three types of opportunities for sharing a sound basis for diversification or vertical integration? Give an example of each from companies you have read and or researched.
|
|
Referring to your imaginary companys acquisition
: Referring to your imaginary company's acquisition in Unit 2, refer to page 143 and choose two writing techniques. Write a substantial paragraph using each one to discuss an aspect of the acquisition. You can make up your own company and details.
|
|
Explain merger and acquisition strategies
: Explain merger and acquisition strategies and how they relate to strategic competitiveness. Discuss the mergers and acquisitions that the UFC has made? How have these increased UFC's strategic competitiveness?
|
|
Calculate the percent complete for project
: The initial contract was signed on January 5, 2010 in the amount of $1,000,000. This amount included $800,000 for construction costs, $150,000 for overhead mark-up, and $50,000 for profit markup. The contractor broke ground on February 4, 2010. Calcu..
|
|
Two responsibilities that pertain to social responsibilities
: Explain Carroll’s two responsibilities that pertain to social responsibilities. Do you believe these responsibilities are growing in support from corporations, or not, and why?
|
|
A kind of genetic engineering happens in nature
: A kind of genetic engineering happens in nature, with naturally occurring mutations and the dominance of certain strains. What is different about today’s processes? What makes them potentially dangerous? What should we consider natural and what is ar..
|
|
Companys ability to produce chips that meet specifications
: A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. What are the elements that the production manager should consider in d..
|
|
The consensus of opinion is that the tax is unfair
: The conclusion ascertained from a perusal of pertinent data is that a lucrative market exists for the product-Unfamiliar words (2 points) Company operations for the preceding accounting period terminated with deficit- Unfamiliar words. The consensus ..
|