Explain how much loss should hansen have recognized

Assignment Help Financial Accounting

Reference no: EM13123468

Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing income. During 1997 Hansen started work on a $3,000,000 fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31, 1997:

Costs incurred $930,000
Estimated cost to complete 2,170,000
Progress billings 1,100,000
Collections 700,000

How much loss should Hansen have recognized in 1997?
a. $230,000
b. $100,000
c. $30,000
d. $0

Reference no: EM13123468

Questions Cloud

Illustrate what is the total amound of green installment : Green Company, which began operation on January 1, 1990, appropriately uses the installment method of accounting. The following information is available for 1990: Illustrate what is the total amound of Green's installment sales for 1990?

Compute the initial value problem : Compute the Initial Value Problem, Let G be a bipartite graph partitioned into vertex sets V and W. Assume all vertices have the same degree. Show G has a perfect matching.

Find percentage of persons who want to go to europe : Has there been a significant shift upward in the percentage of persons who want to go to Europe? Using the .05 significance level for this study.

Equations of straight lines : A line passes through the point (6, -6) and has a slope of -3. Write an equation for this line in (x, y) coordinates. Write equations for the vertical and the horizontal lines passing through the point (6, 1) in (x,y) coordinates.

Explain how much loss should hansen have recognized : Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing income. During 1997 Hansen started work on a $3,000,000 fixed-price construction contract. Explain how much loss should Hansen have recognized in ..

Which value most accurately represents critical value of z : Our sample size is 17. Which value most accurately represents the critical value of Z that you would use to plug in for your interval?

Example of an assets historical cost : Most companies use historical cost to value property, plant, and equipment assets. What components make up historical cost? Provide an example of an asset's historical cost.

Calculate the molar concentration of oh- ions : Calculate the molar concentration of OH- ions in a 7.5×10^-2 M solution of ethylamine C2H5NH2(Kb = 6.4x10^-4).

Important information about graph parabola : Graph the function using the equation in part a. Explain why it is not necessary to plot points to graph when using y = a (x - h) 2 + k.

User Account

All Pages