Percentage-of-completion method

Assignment Help Accounting Basics
Reference no: EM13127012

During 2008, Tidal Wave Company began construction on a project scheduled for completion in 2011. At December 31, 2009, an overall loss was anticipated at contract completion. What would be the effect of the project on 2009 operating income under the percentage-of-completion method and the completed contract method?

Percentage of completion/Completed contract

a. No effect/No effect

b. No effect/Decrease

c. Decrease/No effect

d. Decrease/Decrease

Reference no: EM13127012

Questions Cloud

Setting and solving linear programming question : A furniture manufacturer produces sofas, tables, and chairs. The profits per item are, respectively, $70, $120, and $80. The pieces of furniture require the following labor-hours for their manufacture.
Ending work in process inventory : The ending work in process is 60% complete with respect to conversion costs. What cost would be recorded for the ending work in process inventory?
How many liters of this water could be contaminated : Exactly 100 pounds of cane sugar (dextrose), C12H22O11, were accidentally discharged into a small stream saturated with oxygen from the air at 25 celcius.
What is the molarity (m) of this saturated solution : The solubility of O2 (g) in water is 4.43mg O2/100 g H2O (20ºC and 1 atm). What is the molarity (M) of this saturated solution?
Percentage-of-completion method : What would be the effect of the project on 2009 operating income under the percentage-of-completion method and the completed contract method?
Elucidate financial statement element other than equity : Define investments by owners and provide examples of this type of transaction. What financial statement element other than equity is typically affected by owner investments?
Effect of accepting the special order on melville operation : If Mowen Company offers to buy the special order units at $65 per unit, the effect of accepting the special order on Melville's operating income next year should be a what?
Calculate the heat released : calculate the heat released when 166g of water at 23 degrees celcius is converted to ice at negative 10 degrees celcius
Illustrate what will be the effect of the lease on ltt : The office building was acquired by Lakeside at a cost of $1 million and was expected to have a useful life of 15 years with no residual value. Illustrate what will be the effect of the lease on LTT's earnings for the first year (ignore taxes)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Setting up an amortization schedule

Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 10 percent, compounded annually.

  Actions would reduce its need to issue new common stock

Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock.  Since new stock has a higher cost than retained earnings, Banksto..

  Information about global finance

What are some implications of currency depreciation, devaluation, and appreciation for the US Dollar compared to a foreign currency? How does a strong U.S. dollar affect the balance of trade for USA? Why?

  Connection with consolidation of assest

What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.

  What steps in accepting the engagement were violated

The managing partner of the firm decides to accept the engagement. A major factor in the decision is that the firm does not have any clients in the construction industry and this will provide valuable experience. He promptly calls the president an..

  What is their recognized gain

They made major capital improvements through their 10-year ownership, which totaled $50,000. What is their recognized gain

  Question on private business competition

Choose an article on Private Business Competition from a professional, economic, or management journal published in the last ten years such as The Freeman: Ideas On Liberty, The Economist, Forbes, The Cato Journal, Harvard Business Review, or Sloa..

  Why do you think that they have made this change

For the longest time, companies offered the employees who stayed with the company for many years a defined pension plan for to help them retire when it was time. That time has since passed and companies now offer a defined contribution plan instea..

  Economic order quantity-ordering costs

Monthly demand for an inventory item currently averages 160 units. The annual carrying cost is $10 per unit. Ordering cost is $60 per order. This information applies to all of the questions on this page.

  Aicpa code of professional conduct does work

In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern?

  Accumulated depreciation for the asset

Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2011. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method.

  Make the journal entry

Brennan Steel Corporation as lessee signed a lease agreement for equipment for five years, starting December 31, 2007. yearly rental payments of $32,000 are to be made at the beginning of each lease year.

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