Compute the construction costs expensed

Assignment Help Accounting Basics
Reference no: EM132673612

On December 31, 2014, State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State Construction anticipates the construction will take three years.

The company's accountants provide the following contract details relating to the project:

Contract price $520 million

Estimated construction costs $400 million

Estimated total profit $120 million

During the three-year construction period, State Construction incurred costs as follows:

2015 $ 40 million

2016 $240 million

2017 $120 million

Required:

Problem 1: Compute the following items for each year using the cost-to-cost method: 1. revenue recognized 2. construction costs expensed 3. gross profit earned

Reference no: EM132673612

Questions Cloud

What is Erin recognized gain or loss : Erin purchased stock in JKL Corporation several years ago for $8,750. What is Erin's realized gain or loss? What is Erin's recognized gain or loss
Calculate the net income for emerson : Calculate the net income. During the year, Emerson has a net employment income of $123,480, interest income of $4622,taxable capital gain of $24246.
Texas real estate : How is fraud different than puffing and misrepresentation? What are the Pick 7 protected classes? How is the act of commission different from act of omission.
Importance of providing accurate product : Describe the importance of providing accurate product information to customers in order to provide quality customer service.
Compute the construction costs expensed : Compute the following items for each year using the cost-to-cost method: revenue recognized, construction costs expensed, gross profit earned
Who must use the consumer information form : What addendum must be used if the seller is going to carry a second lien for a portion of her equity? Who must use the Consumer Information Form?
Activity-implementation obstacles : Consider the following potential obstacles in consulting with stakeholders, and address each. Draw on examples you or others may have encountered
Calculate standard deduction or itemized deduction amount : Bill is a single taxpayer age 27. In 2019, his salary is $29,000 and he has interest income of $1,500. Calculate standard deduction or itemized deduction amount
Promote a healthily living campaign in a rural area : What are the most effective social media platforms to promote a healthily living campaign in a rural area?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Earnings per share of common stock for 2013

Earnings per share of common stock for 2013

  What amount of the note payable

What amount of the note payable should L include in the current liabilities section of its December 31, 2021, balance sheet?prepaid $530,000 of the note

  What return on equity will pinkerton earn

Pinkerton Packaging's ROE last year was 2.5 percent, but its management has developed a new operating plan designed to improve things.

  Prepare the consolidation entries using the equity method

On January 1, 2013, Thunder Corp acquired 80% of Baldwin Corp. Prepare the consolidation entries using the equity method

  Determine the cost per unit of production for previous month

Direct materials for the month amounted to $101,500. Direct labor for the month was $196,500. Determine the cost per unit of production for previous month

  Do you think budgetary accounting and budgetary reporting

do you think budgetary accounting and budgetary reporting is a good thing? discussion question the discussion question

  Possible input-diode combination

Repeat with two of the transistors diode connected and the third used to provide current output. For each possible input-diode combination, give the values of the output currents and of the VSG that results.

  Prepare journal entry to correct balances presently reported

Seemore Lens Company (SLC) manufactures and sells contact lenses. For each item, (a-d), prepare the journal entry to correct the balances presently reported.

  Practice of suttee

Question 1: In India, what is the practice of suttee?

  What is the percent ownership of our venture

A potential investor is seeking to invest $500,000 in a venture, What is the percent ownership of our venture that must be sold

  Prepare the general journal entry to record depreciation

Prepare the general journal entry to record depreciation expense for the equipment in 2012

  Encumbrances and approval for payment

The sheriff 's office in the village of Katoonah had a General Fund appropriation of $85,000 for public safety supplies.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd