User Account

All Pages

Compute the amount of revenue and gross profit or loss

Assignment Help Financial Accounting
Reference no: EM132484068

Point 1: On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,060,000. During 2018, costs of $2,020,000 were incurred with estimated costs of $4,020,000 yet to be incurred. Billings of $2,520,000 were sent, and cash collected was $2,270,000.

Point 2: In 2019, costs incurred were $2,520,000 with remaining costs estimated to be $3,630,000. 2019 billings were $2,770,000 and $2,495,000 cash was collected. The project was completed in 2020 after additional costs of $3,820,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required:

Question 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method?

Reference no: EM132484068

Questions Cloud

What would you get if you grew perpetuity : What would you get if you grew this perpetuity by the nominal growth rate, and then discounted it at the real (not nominal) cost of capital?
Determine what equivalent annual saving from purchase : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations)
Calculate confidence intervals for the quantitative variable : Calculate confidence intervals for the quantitative variables in the Heart Rate Dataset - Open the Heart Rate Dataset in Excel and identify the quantitative
What did the video teach you about suicide : Please watch the video below and answer the following questions: Did this video change your opinion on suicide? What did the video teach you about suicide?
Compute the amount of revenue and gross profit or loss : Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method?
Find the latest 10-k filing of verizon : Find the latest 10-K filing of Verizon, the large telecommunications company. Determine whether they use interest rate and currency swaps and why.
Cost of equity raised by selling new common stock : Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $22.50; g = 5.00% (constant); and F = 6.
How many years will it be before inheritance grows : If you put your inheritance in an account that earns 9 percent interest compounded? annually, how many years will it be before inheritance grows to ?$30,000?
Calculate the wacc change if the new tax rate was adopted : By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Do not round your intermediate calculations.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the amount of net income reported

What was the amount of net income reported by Chipo Corp. in 2012 - A small stock dividend was declared and issued in 2012. The market value of the shares was $11,100.

  Used the fair-value method to account for this investment

Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2011 and paid dividends of $60,000 on October 1, 2011. How much income should Gaw r..

  Executive officers of shavez company are wrestling with

executive officers of shavez company are wrestling with their budget for next year. the subsequent are two different

  Determine the net cash flows from operating activities

Last year Emmons Company reported cost of goods sold of $115,000. Inventories decreased by $20,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash flows from operating activitie..

  Need a pre-tax analysis of situation

Need a recommendation whether the company should buy the automated machines based on the calculations - ABC Inc sells about 170,000 devices per year at a sales

  Problem summarizes typical transactions engaged

This problem summarizes typical transactions engaged in by not-for-profit organizations. The American Association for Freedom, a political think tank, was recently established. It received a $10,000,000 endowment contribution, all in stocks and bonds..

  Prepare journal entries for the purchase

Prepare journal entries for the purchase, intervening balance sheet dates, and payment of obligation.

  Complete the journal entries the company would record

A company sold $18,000 of goods on credit on May 1. At the time of the sale, the company recorded a debit to Accounts Receivable and a credit to Sales Revenue for $18,000. Terms were 2/10, n/30.

  Prepare the journal entry for culver to record the sale

Culver Woodcrafters sells $239,100 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Culver estimates that the recourse liability ..

  What is the basis of the new machinery

Blue Corporation exchanges machinery with a basis of 200,000 and a FMV of 250,000 for machinery with a FMV of 175,000 and cash of 75,000. What is Blue’s realized gain or loss? What is Blue’s recognized gain or loss? What is the basis of the new machi..

  Define product cannibalisation in capital budgeting decision

Define 'product cannibalisation' in capital budgeting decisions and address Nathan's concerns that it should be considered

  What did standard rate company record as goodwill

At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book value of the assets of the acquired company were $174 million, its liabilities $115 million. What did Standard Rate Company..

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