User Account

All Pages

Compute the amount of revenue and gross profit or loss

Assignment Help Financial Accounting
Reference no: EM132920082

Question - On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,420,000. During 2021, costs of $2,140,000 were incurred with estimated costs of $4,140,000 yet to be incurred. Billings of $2,640,000 were sent, and cash collected was $2,390,000.

In 2022, costs incurred were $2,640,000 with remaining costs estimated to be $3,810,000. 2022 billings were $2,890,000 and $2,615,000 cash was collected. The project was completed in 2023 after additional costs of $3,940,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

1. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method.

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 the partial balance sheet to show the presentation of the project as of December 31, 2021.

3b. Prepare the partial balance sheet to show the presentation of the project as of December 31, 2022.

Reference no: EM132920082

Questions Cloud

Identify two key players in aviation insurance : Identify two key players in aviation insurance and explain each key player's function in the industry.
Importance in controlling staff costs : What is the role of rosters and their importance in controlling staff costs
Find what is the expected rate of return on the share : The Never Failing Supply share is expected to return 16% in a booming economy, 12% in a normal economy. What is the expected rate of return on this share?
Prepare a statement of shareholders equity of red sox ltd : Prepare a statement of shareholders' equity, in a proper format with proper title and appropriate note disclosures, for Red Sox Ltd. for the year ended December
Compute the amount of revenue and gross profit or loss : Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method
Importance in controlling staff costs : What is the role of rosters and their importance in controlling staff costs
What is the contract worth today : What is this contract worth today if Ash can earn 7.2% on her hard-earned money? There are rumors Ash Barty has just signed a $2.2 million contract.
Give two examples of actions : Give two examples of actions that may invalidate an insurance policy.
Provide a business example of price discrimination-bundling : 1) Provide a business example of price discrimination or bundling 2) Provide a business example of cooperative or non-cooperative bargaining

Reviews

Write a Review

Financial Accounting Questions & Answers

  Can the payee of a negotiable instrument be a holder

Can the payee of a negotiable instrument be a holder in due course and Against whom can the maker of a note successfully assert a personal defense?

  Prepare the appropriate journal entries

Palo Alto City has operated a City Utility Enterprise Fund for a number of years. The fund accounts for the activities of the city-owned electric.

  Calculate the break-even point for month in units

Gabby’s Wedding Cakes creates elaborate wedding cakes. Each cake sells for $600. The variable cost of making the cakes is $250, and the fixed cost per month is $8,750. Calculate the break-even point for a month in units.

  Compute the measurements you researched

Financial statement of your SLP company to compute the measurements  - Reflect on the advantages and disadvantages of these performance measures.

  Analyze each transaction and indicate its effect

Construct a table similar to the one shown. Analyze each transaction and indicate its effect on the fundamental accounting equation.

  Determine the selling price of the bond for abc company

Determine the selling price of the bond. ABC Company issued $600,000, 10%, 10-year bonds on January 1, 2010 when the market interest rate was 8%.

  How much federal tax on the received dividend

AAA Company receives $1,200 of dividend from BBB Company in 2020. How much federal tax on the received dividend would AAA Company owe to the IRS

  About the debt-to-equity ratio

White Memorial Hospital has a debt-to-equity ratio of 0.67. What is the hospital's debt ratio? Commissions and other expenses for acquiring the shares are treated as part of the cost of the equity-is this true, and if so, what are the exceptions?

  Advantage of the discount

What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?

  Estimate of doubtful accounts have on income statement

The following is taken from the asset section of a recently issued annual report ($ in millions): Loans, net of unearned income $244,206 Allowance for possible credit losses (6,679) What sort of business do you think this company is in? What effect d..

  Advantages and disadvantages of using ratios for analysis

Do you find the balance sheet, income statement or other measures such as ratios the most informative? Comment on the advantages and disadvantages of using ratios for analysis.

  Standard cost system

Bovine Incorporated has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable overhead is $7.33 per MH. The company had budgeted its fixed m..

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