Recognizes revenue upon contract completion

Assignment Help Financial Accounting

Reference no: EM13753318

A construction company entered into a fixed-price contract to build an office building for $18 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The building was completed during the second year. Construction costs incurred during the second year were $10 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion?

Reference no: EM13753318

Questions Cloud

Actual return on plan assets components of net pension cost : Determine the actual return on plan assets components of net pension cost for 2012. Assume contribution and benefits payments were made at year-end.

Cost of goods manufactured for the year : West Shoe Company makes loafers. During the most recent yeat, West incurred total manufacturing cost of $19,400,000. Of this amount, $2,100,000 was direct materials used and $12,800,000 was direct labor. Cost of raw materials purchased to determine

Differences between accounting income and taxable income : Bateman Light began operations in 20X1. The company sometimes sells used warehouses on an instalment basis. In those cases, Bateman Light reports income in its income statement in the year of the sale, In its income tax return, though Bateman Light r..

What will the variable expense per unit be : The selling price of a particular product is $38.00 per unit, fixed costs total $175,000, and the breakeven sales in dollars is $875,000, what will the variable expense per unit be?

Recognizes revenue upon contract completion : A construction company entered into a fixed-price contract to build an office building for $18 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The buil..

Actual manucatoring overhead costs incurred in a process : What would be included in the entry to record actual Manucatoring overhead costs incurred in a process department?

Calculate taxable income and net income : Bateman Light began operations in 20X1. The company sometimes sells used warehouses on an instalment basis. In those cases, Bateman Light reports income in its income statement in the year of the sale, In its income tax return, though Bateman Light r..

Job costing system can be used by which types of companies : A job costing system can be used by which types of companies?

Translate in a convenience translation : A foreign company prepares its financial statements in a foreign language and does not provide any convenience translation. Required How might this affect an analyst’s decision to invest in this company? What are different features of financial state..

User Account

All Pages