Completed-contract method of accounting

Assignment Help Accounting Basics

Reference no: EM13760331

(Recognition of Revenue on Long-Term Contract and Entries) Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2012, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:

	2012	2013
Costs incurred during the year	$640,000	$1,425,000
Estimated costs to complete, as of December 31	960,000	-0-
Billings during the year	420,000	1,680,000
Collections during the year	350,000	1,500,000

Instructions

(a) What portion of the total contract price would be recognized as revenue in 2012? In 2013?

(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2013?

Reference no: EM13760331

Questions Cloud

Create a java class named headphones : Create a Java class named HeadPhones to represent a headphone set. The class contains- A private String data field named manufacturer that specifies the name of· A private boolean data field named pluggedIn that specifies if the headphone is plugge..

Health delivery : A high-level description of how you plan to collect the data for this project.

Acquisition across the controlling and noncontrolling : How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?

Explian practices of language development of all children : identify at least three practices that support the language development of all children. Then, identify and explain three additional considerations that may require attention for children who experience more than one language.

Completed-contract method of accounting : Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2013?

Create a new class called soda : Create a new class called Soda that is also a caffeinated beverage by default it will have no option for condiments. Have it called in main. Main also calls the old addLemon function on Tea so that the customer gets two lemons. Use an adapter to s..

Create a implementation file containing the member function : Create a specification file containing the declaration of the VerifyDate class. Create a implementation file containing the member function definitions for VerifyDate.

Trends toward western-style consumption : China and India have demonstrated trends toward Western-style consumption over the last decade. Given the emphasis on the youth market in the US over the last 60 years (since the baby boom), what can you suggest for marketers in these youth-orient..

Audit professional organizations : Visit a Web site for one of the audit professional organizations.

User Account

All Pages