User Account

All Pages

How much revenue can be recognized on this contract

Assignment Help Accounting Basics
Reference no: EM132521317

Question - Early in 2012, Forest Ltd. signed a contract to construct a warehouse. Forest's management estimated the gross profit on the contract to be $740,000, as indicated by the following:

Contract price $3,500,000

Estimated costs 2,760,000

Estimated gross profit $ 740,000

At the end of 2012, the status of the work on the contract was as follows:

Costs incurred to date $1,350,000

Estimated costs to complete 1,650,000

How much revenue can be recognized on this contract for 2012, assuming that Forest uses the percentage of completion basis for long-term construction contracts (round to nearest dollar)?

A) $333,000

B) $863,333

C) $1,575,000

D) $1,711,957

Reference no: EM132521317

Questions Cloud

Describe amounts of current and deferred income taxes : Provide details of the current and long-term portion of the deferred taxes. Be sure to list the Note number where you found your information.
Discuss the types of reinforcements available to managers : Discuss how Alderfer's ERG Theory satisfied the criticisms of Maslow's Hierarchy of Needs. Discuss the types of reinforcements available to managers for.
Determine the ending inventory cost by average cost methods : here are 17 units of the product in the physical ending inventory at March 31. Determine the ending inventory cost by average cost methods
Identify components of the patient protection : Identify three components of the Patient Protection and Affordable Care Act that went into effect in 2014 and discuss their impact or potential impact.
How much revenue can be recognized on this contract : How much revenue can be recognized on this contract for 2012, assuming that Forest uses the percentage of completion basis for long-term construction contracts
Clearly indicate the time at which the balls pass each other : Ball A is thrown vertically downwards from the top of a building. 80 m high , at a velocity of 12 ms ' At the same instant a second identical ball B
Explain the method used to handle uncollectible accounts : Explain the method used to handle uncollectible Accounts Receivables. They know that you use the Allowance Method but are not familiar.
Calculate the moment of force about c : The magnitude of force T in cable BE is 840N. Calculate the moment of this force about C
What taxes must tripex pay on this interest : The marginal tax rate of Tripex is 34 percent. What taxes must Tripex pay on this interest and dividend income

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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