Solution-Compute the amount of gross profit to be recognized

Compute the amount of gross profit to be recognized

Assignment Help Accounting Basics

Reference no: EM132882352

Question - Recognition of Profit on Long-Term Contracts - During 2014 AFCO started a construction job with a contract price of $2,500,000. The job was completed in 2016. The following information is available.

	2014	2015	2016
Costs incurred to date	$600,000	$1,435,000	$2,100,000
Estimated costs to complete	1,400,000	615,000	-0-
Billings to date	100,000	500,000	2,500,000
Collections to date	100,000	300,000	2,000,000

Required -

(a) Compute 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 2015.

Reference no: EM132882352

Questions Cloud

Calculate the weighted average number of common shares : Calculate the weighted average number of common shares outstanding to be used in calculating earnings per share for 2020

Communicate effectively with employees : If supervisors communicate effectively with employees, deal with their concerns, and treat them fairly, employees are far less likely to be interested in formin

Determine the net operating income under variable costing : Selling and administrative expenses: Variable selling and administrative expense per unit sold $5. Determine the net operating income under variable costing

Calculate the total asset turnover : A company has net sales of $340,000 Assets at the beginning of the year were 281,000, and $275,000 at the end of the year. Calculate the total asset turnover

Compute the amount of gross profit to be recognized : Compute the amount of gross profit to be recognized each year assuming the percentage -of completion method is used

What annual contribution should she make : What annual contribution should she make to superannuateon fund, starting at the end of the current year, if she expects to draw a pension of $120,000 per year

What are the unit costs for flying saucer and rocket ship : The flying saucer and rocket ship use $7.50 and $5.50 of direct materials, per unit, respectively. What are the unit costs for flying saucer and rocket ship

What is Tom basis in the new building : Tom Tanner traded in a business building with an adjusted basis of $200,000 for a smaller building valued at $120,000. What is Tom basis in the new building

Calculate basic and diluted earnings per share : Net income for fiscal year 2020 was $1,512,000 and the average income tax rate was 25%. Calculate basic and diluted earnings per share

User Account

All Pages

Compute the amount of gross profit to be recognized

Reference no: EM132882352

Reference no: EM132882352

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT