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)?

User Account

All Pages