Compute the revenue and pretax income

Reference no: EM131522649

Question: [Contract accounting; CFAO adapted On December 31. 1999, I.AS] Construction entered into a major long-term concatenate n with the following terms:

- Total contract price $3,000,000

- Total expected cost $2.400.000

Construction is expected to take three years. Production ants and cash flows are shown in the following table:

a. Show the revenue ad pretax income for each year under both the percentage-of-completion and completed contract methods.

b. Show the balance sheet accounts at December 31. 2000 resulting from the contract under the

(i) Percentage-of-completion method

(ii) Completed contract method

c. Assam that thud projected costs increase by 31041.000 and the change in estimate is made at December 31, 2000 Compute the revenue and pretax income for 2001 under the re-vised assumption.

Reference no: EM131522649

Questions Cloud

Describe conditions under which revenue would be recognized : [Revenue recognition criteria] Describe the conditions under which revenue would be recognized.

California and the concept of race : The 2010 Census had a lot of interesting elements, but there were a couple elements that especially caught my interest.

Produce the identical cash flows for flowers : What other package (Investment in Company O) would produce the identical cash flows for Flowers?

Expect to decay during that time : If you left those 100 carbon-14 atoms to sit around for 5700 years, how many would you expect to decay during that time?

Compute the revenue and pretax income : [Contract accounting; CFAO adapted On December 31. 1999, I.AS] Construction entered into a major long-term concatenate n with the following terms.

Develop a research paper on a health care technology : You will develop a research paper on a health care technology that has become essential to the sharing of information via electronic communication mediums

Equilibrium is established in the reaction : What is [pb^2+] when equilibrium is established in the reaction? What is [Cr^2+] when equilibrium is established in the reaction?

Read a theology of african american worship : Visit the websites for precise information on times of worship. Both may also provide transportation if you do not have access to it.

Determine the ph of a solution : Determine the pH of a solution that is 3.8 ×10-2 M HCl. Determine the pH of a solution that is 2 ×10-3 M HNO3.

User Account

All Pages