Debited to construction expenditure

Assignment Help Accounting Basics
Reference no: EM13131447

In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should be debited to Construction Expenditure is:

A) $475,000.

B) $497,500.

C) $500,000.

D) $ 25,000.

Reference no: EM13131447

Questions Cloud

What was bob realized gain on the sale : Bob owns a rental property that he bought several years ago for $260,000. He has taken depreciation on the house of $37,000 since buying it. e sells it in 2011 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized g..
Projects fund for a multi-year capital project : What journal entry should be made at the beginning of the fiscal year to reestablish the Encumbrances account of a capital projects fund for a multi-year capital project?
Illustrate what amount of revenue and cash flow resulted : Merchandise inventory costing $20,000 was sold to customers for $28,000 cash. Illustrate what amount of revenue and cash flow resulted from this transaction?
Prepare the journal entry for the purchase : On December 31, 2012, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2016.
Debited to construction expenditure : In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should..
What mass of solid la(io3)3 is formed : what mass of solid La(IO3)3 is formed when 50 ml of 0.250 M La are mixed with 75.0 ml of 0.302 M IO3-
Describe how you to simulate rolling the dice : You are one space short of winning a child's board game and must roll a 1 dice to claim victory. You want to know how many rolls it might take. Describe how you would simulate rolling the dice until you get 1.
Calculate the optimal amount of pretzels : Calculate the optimal amount of pretzels and soft drinks that minimizes this firm's costs and how many frames do you provide each month?
Compute kelly taxable income : Kelly is single. Her dependent child, Barbara, lives with her. After her divorce, Kelly was awarded the permanent custody of Barbara and has not agreed to waive her right to claim Barbara as a dependent. Kelly has the following items as income and..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What is the amount of the loss on impairment

What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?

  Differences between planned and actual results

Under management by exception, which differences between planned and actual results should be investigated?

  Calculate profit as a percentage of sales

Prepare a paragraph of explanation/interpretation of the data as if this were a small part of a lengthy report to potential investors.

  Basis to the corporation of the property

What gain or loss is recognized by the corporation when it issues its shares to Kyle? What is the basis to the corporation of the property it received from Kyle?

  Determining free cash flow

During the year, Xero, Inc., experienced increase in net fixed assets of $300,000 and had depreciation of $200,000. If operating cash flow (OCF) for the year was $700,000, compute firm's free cash flow (FCF) for the year.

  Comment on the following items relative to tax planning

Comment on the following items relative to tax planning strategies of a fiduciary entity.

  Account for the time value of money

One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. Why do you think this is a correct statement?

  Why is a statement of functional expenses considered

Why is a statement of functional expenses considered an important financial statement for a voluntary health and welfare organization? How does a statement of functional expenses differ from the expense section of a statement of activities? Do the..

  What entry is required in the depositors accounts

A check drawn by a depositor in payment of a voucher for $925 was recorded in the journal as $295. What entry is required in the depositor's accounts?

  Compute the break-even point

In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.

  Accumulated retained earnings impact book value

Explain how accumulated retained earnings impact the book value of a firm's stock. Give two reasons why the market book share prices might be different. Be specific.

  What is the revenue, cost, and gross profit

The Rushing Construction Company obtained a construction ontract to build a highway and bridge over the Snake River It was estimated at the biginning of the contract that it would take three years to complete the project at an expected cost of $50..

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