How much gross profit will the company recognize

Reference no: EM131014522

1. During 2013, Rogue Corporation reported sales revenue of $610,000. Inventory at both the beginning and end of the year totaled $80,000. The inventory turnover ratio for the year was 5.0. What amount of gross profit did the company report in its income statement for 2013?

2. Furtastic manufactures imitation fur garments. On June 1, 2016, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $165,000 to Furtastic on June 30, 2016. In a separate transaction on June 15, 2016, Furtastic purchased brand advertising services from Willett for $15,000. The fair value of those advertising services is $6,500. Furtastic expects that 4% of all sales will prove uncollectible.

Required:

Prepare the journal entries to record the transactions above

3. A construction company entered into a fixed-price contract to build an office building for $10 million. Construction costs incurred during the first year were $2 million and estimated costs to complete at the end of the year were $3 million.

How much gross profit will the company recognize in the first year using the percentage-of-completion method?

How much revenue will appear in the company’s income statement in the first year using the percentage-of-completion method?

Reference no: EM131014522

Questions Cloud

Problem regarding the prescriptive approaches : Albert Schweitzer (the philosopher and mission doctor) said, "Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful." What do you think? How does this relate to the prescriptiv..

Constuct a piece wise defined function : Plot different members of the families y1=x2+C1 and y2=-x2+C2. Constuct a piece wise defined function- not a member of the previous two- which is also a solution of the same DE.

How would draw up a program to rehabilitate levee system : The levees were built over 50 years ago and many of them are showing signs of structural distress. Using a systems perspective, how would you draw up a program to rehabilitate the levee system under budgetary constraints over a 5-year period?

Ethical decision-making frameworks : 1. Think about situations where your values have been in conflict. How have you resolved those conflicts? Now that you have studied the ethical decision-making frameworks in this chapter, what should you have done?

How much gross profit will the company recognize : How much gross profit will the company recognize in the first year using the percentage-of-completion method?

Find the dimensions of the rectangle that maximize the area : It the perimeter of the track is to be exactly 440 yards, find the dimensions of the rectangle that maximize the area of the rectangle.

Discuss the evolution of that branch over the millennia : Discuss the differences between any two rival philosophies of civil engineering systems design, citing examples from past civilizations. Include a discussion of your preferred philosophy in the context of civil engineering systems resilience and s..

Concept of business model into customer interface : Hutt breaks the concept of business model into four components: customer interface, core strategy, strategic resources, and value network

What is the total risk of this portfolio : A portfolio consists of 4 securities. Security 1: Beta= 1.2 Standard deviation of random error term=5% Proportion=.10. Security 2: Beta=1.03 Standard deviation of random error term= 7% Proportion = .10 The standard deviation of the market index is 15..

User Account

All Pages