Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year 2023 $ 411,000 959,000 465,000 365,000 2024 $1,020,000 0 1,255,000 1,355,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Q: On December 31, 2020, Berclair Inc. had 280 million shares of common stock and 3 million shares of…
A: Basic EPS = ( net income - preference dividend ) / Weighted average number of common shares…
Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $2…
A: Material price variance is computed when material is purchased. Material price variance is…
Q: Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them.…
A: The company incurs various costs while producing the goods and services. Some costs are added to the…
Q: Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for…
A: Given in the Question:FICA Social Security Tax Rate = 6.2%FICA is applicable on first $137,700FICA…
Q: Minimum Cost: Amount of bluegrass: Amount of rye: Amount of Bermuda: dollars lbs lbs lbs
A: One of the purpose of cost-accounting is to minimize the cost of production, so that profit of the…
Q: Requirements What is the hourly cost to Pitt Accounting of employing Geller? Assume a 45-hour week…
A: Direct Labor Cost is the cost incurred on Labor, which were directly involved in the production of…
Q: Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The…
A: In order to determine how much gross profit or net profit they make annually, business organizations…
Q: At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements…
A: Overapplied overhead occurs when expenses incurred are actually less than what a company accounts…
Q: Odessa, Inc., reports the following Information concerning operations for the most recent month:…
A: Lets understand the basics.Management prepares static budget for one level of activity and flexible…
Q: This is a representation or statement which may be expressly stated or implied by the responsible…
A: Lets understanding the basics.Subject matter of information means a actual information or data that…
Q: Kando Company currently pays $11 per unit to buy a part for a product it manufactures. Instead,…
A: Sometimes Company Prepare a Cost analysis to find out which option is better to make more profit.…
Q: Assume that Gulistan AG has the following accounts at the end of the current year. ,1, Share…
A: Balance sheet refers to that financial statement that provides an overview of a business's financial…
Q: The Boxwood Company sells blankets for $35 each. The following was taken from the inventory records…
A: LIFO Method :— It is one of the method of inventory valuation in which it is assumed that recent or…
Q: 8. The accounts shown are from last year's books at Sharp Manufacturing. Sharp uses job-order…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: The following schedule relates the income statement with cash flows from operating activities,…
A: Cash Flow Statement -Statement of Cash Flow includes inflow and outflow of cash during the financial…
Q: 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense…
A: Depreciation is being recorded for showing reduction in value of asset over time. Gain or loss is…
Q: 1. You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate of 4% paid…
A: The spot rate refers to the interest rate offered on the securities if the investment is made at the…
Q: Calculate the Health and Post-Secondary Education Tax
A: Payroll tax, at a rate of 2%, is payable by employers whose annual remuneration in this province…
Q: Which of the following states that "the objective of general purpose financial reporting is to…
A: IASC Stands for International Accounting standard committee, the main work of IASC is to manage the…
Q: The equity section of a company for the last 2 years shows the following: - Share capital 885 M…
A: Lets understand the basics.When entity issues share then it needs to credited to share capital…
Q: 4 50 Required information [The following information applies to the questions displayed below.] On…
A: Monthly Interest Expense :— It is calculated by multiplying carrying value of mortgage with monthly…
Q: TRUE OR FALSE The practitioner plans and performs an assurance engagement using his professional…
A: Lets understand the basics.Audit is an examination of the books of account in order to form an…
Q: An audit can have significant effect on A. Financial risk B. Business risk C. Information risk D.…
A: Audit is the process of detailed checking and verification of books of accounts in the business. The…
Q: O'Brien Company manufactures and sells one product. The following information pertains to each of…
A: Answer:- Income statement :- Income statement is basically a financial statement that outlines the…
Q: Q9 From the following trial balance of Lim Trading, draw up an Income Statement for the year ended…
A: Balance sheet is that financial statement which shows all assets, liabilities and equity as on…
Q: Data related to the inventories of Costco Medical Supply are presented below: Surgical Equipment $…
A: Lower of cost or NRV can be done using either in individual or on group basis. In individual basis,…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The income statement is one of the financial statements of the business. It tells about the…
Q: 4. Determine the interest expense recorded in Year 2. Note: Do not round intermediate calculations…
A: The following basic information as follows under:-Principle $36,000Interest rate 6%Days in a year…
Q: The reliability of the audit evidence considers , EXCEPT A. Evidence obtained directly by the…
A: Answer:- Audit meaning:- The impartial review of the entity's financial statements for the purpose…
Q: Emma's Designs is a for-profit clothing manufacturer. The components of its financial statements…
A: To determine the overall materiality and tolerable misstatement, several factors need to be…
Q: Bramble Inc. is a retailer operating in British Columbia. Bramble uses the perpetual inventory…
A:
Q: Required: 1. What is the financial advantage (disadvantage) of further processing one T-bone steak…
A: The incremental cost analysis is that type of analysis that helps the management in detailing the…
Q: No. Account Titles and Explanation 1. WIP Inventory-Canning 2. WIP Inventory-Mixing FG Inventory WIP…
A: Journal entry is an art of recording, classifying and summarising the business transaction into…
Q: TRUE OR FALSE: AUDITING 4. In an audit of financial statements, the suitable criteria to be used is…
A: Question 4. Correct option:- FalseExplanation:-The suitable criteria to be used in an audit of…
Q: ROR Corporation's income statement for the year ended December 31, 2024 follows: (Click on the loon…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common…
A: Balance Sheet -Balance Sheet is a financial Statement that includes Assets, Liabilities and…
Q: Bonita, Inc. decided to implement the activity-based costing approach and was quite successful in…
A: Under Activity based costing method, the cost is allocated to each activity based on their…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: The contribution margin is calculated as difference between sales and variable costs. The net income…
Q: Required (i) Sales budget. (ii) Schedule of cash collections (iii) Cash budget
A: Sales Budget is a summary which helps in estimating the sales revenue to be earned in the future…
Q: Big Warehouses borrowed $102,700 from a bank and signed a note requiring 13 annual payments of…
A: Calculation of interest rate implicit in this agreement.
Q: Required: 1. Compute income from the special offer. 2. Should the company accept or reject the…
A: Special Orders are those orders which are received by the Entity in addition to its normal…
Q: Required: Compute Terry's gross pay for the 40-hour weekly pay period. (Negative amount(s) should be…
A: Gross pay means the amount paid to employee before make any deduction and taxes. Net pay is the…
Q: Which of the following statements is correct concerning an auditor’s responsibilities regarding…
A: Auditor's responsibilities to express an opinion on audited financial statements. They encompass…
Q: Hendrix & Franks Company had the following beginning and ending inventory balances for the current…
A: Cost of Goods Sold -Cost of Goods Sold is a cost incurred to make the goods available to the…
Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East…
A: Budgeting -Budgeting is a technique used to prepare Future estimation of Sale and Expenses on the…
Q: Cost allocation is often the centerpiece of conflict that is resolved in court cases. The litigation…
A: Cost allocation is the process of identifying and assigning costs to activities, people, projects or…
Q: In preparing its bank reconciliation for the month of April 2020, Sunland, Inc. has available the…
A: Bank Reconciliation is prepare in every organisation for reconciliation of bank passbook balance…
Q: Which of the following ratios does not use net income in its calculation? Multiple Choice…
A: (i) Net profit margin:The formula for net profit margin is:Thus, 'Net profit margin' is an incorrect…
Q: Quality Cost Report Evans Company had total sales of $1,800,000 for fiscal 20x5. The costs of…
A: Cost of quality report is one of the important report prepared for performance management. Several…
Q: Martinez Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of…
A: Total labor variance :— It is the difference between standard labor cost for actual production and…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,870,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year View transaction lit Journal entry worksheet 2 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 1 3 Outs 2023 4 5 2823 2824 $ 429,000 $1,170,000 1,001,000 General Jual 435,000 1,435,000 335.000 1,535,00m Record the entry for costs incurred during the year 2023. 7 • B CHSandhill Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.8 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses $ Gross Profit $ 2022 2022 $637,000 1,489,000 $844,000 Calculate the gross profit to be recognized each year using the completed-contract method. 2023 $ $ 713,000 2024 $715,900 2023 0 $ $ 2024 SUPPORT
- Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses Gross Profit Calculate the gross profit to be recognized each year using the completed-contract method. $ 2022 $661,000 $822,000 1,519,000 705,000 2023 2022 2024 $685,900 0 2023 $ 2024In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Revenue Gross profit (loss) Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Answer is complete and correct. 2024 $ 2,400,000 5,600,000 2,000,000 1,800,000 2024 $ 3,000,000 $ $ 600,000 $ 2025 2026 4,500,000 $ 2,500,000 900,000 $ 300,000 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 2026 $ 2,200,000 0 4,000,000 4,600,000Pharoah Construction entered into a contract to construct a bridge for a contract price of $2.95 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract: 2019 2020 2021 Costs incurred during the year $649,000 $836,000 $693,900 Estimated costs to complete 1,427,800 515,000 0 Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.) 2019 2020 2021 Revenue $ $ $ Expenses Gross Profit $ $ $
- In 2018, the Laguna Inc entered into a contract to construct a road for 5th Avenue for $14,000,000. The road was completed in 2018. Information related to the contract is as follows: Laguna uses the percentage-of-completion method of accounting for long-term construction contracts. Required: Calculate the amount of gross profit to be recognized in each of the three years. Prepare all necessary journal entries for each of the years (credit various accounts for construction costs incurred). Prepare a partial balance sheet for 2016 and 2017 showing any items related to the contract.Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…road was completed in 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). Cost incurred during the year. Estimated costs to complete as of year-end 2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash,…
- Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed In 2026. Information related to the contract is as follows: Cost Incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the Journal below, complete the necessary Journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs Incurred). 2-b. In the Journal below, complete the necessary Journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs Incurred). Cost Incurred during the year Estimated costs to complete as of year-end 2-c. In the Journal below, complete the necessary…