Explain how much loss should hansen have recognized

Assignment Help Financial Accounting
Reference no: EM13123468

Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing income. During 1997 Hansen started work on a $3,000,000 fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31, 1997:

Costs incurred $930,000
Estimated cost to complete 2,170,000
Progress billings 1,100,000
Collections 700,000

How much loss should Hansen have recognized in 1997?
a. $230,000
b. $100,000
c. $30,000
d. $0

Reference no: EM13123468

Questions Cloud

Illustrate what is the total amound of green installment : Green Company, which began operation on January 1, 1990, appropriately uses the installment method of accounting. The following information is available for 1990: Illustrate what is the total amound of Green's installment sales for 1990?
Compute the initial value problem : Compute the Initial Value Problem, Let G be a bipartite graph partitioned into vertex sets V and W. Assume all vertices have the same degree. Show G has a perfect matching.
Find percentage of persons who want to go to europe : Has there been a significant shift upward in the percentage of persons who want to go to Europe? Using the .05 significance level for this study.
Equations of straight lines : A line passes through the point (6, -6) and has a slope of -3. Write an equation for this line in (x, y) coordinates. Write equations for the vertical and the horizontal lines passing through the point (6, 1) in (x,y) coordinates.
Explain how much loss should hansen have recognized : Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing income. During 1997 Hansen started work on a $3,000,000 fixed-price construction contract. Explain how much loss should Hansen have recognized in ..
Which value most accurately represents critical value of z : Our sample size is 17. Which value most accurately represents the critical value of Z that you would use to plug in for your interval?
Example of an assets historical cost : Most companies use historical cost to value property, plant, and equipment assets. What components make up historical cost? Provide an example of an asset's historical cost.
Calculate the molar concentration of oh- ions : Calculate the molar concentration of OH- ions in a 7.5×10^-2 M solution of ethylamine C2H5NH2(Kb = 6.4x10^-4).
Important information about graph parabola : Graph the function using the equation in part a. Explain why it is not necessary to plot points to graph when using y = a (x - h) 2 + k.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What journal entry is recorded

Calculating Revenue Profit & Capital Profit and passing Journal Entry - If Bon Air sells 400 shares of this stock on December 31, 2007, for $60,000 cash, what journal entry is recorded?

  What is difference between a settlement and a curtailment

Determine the current year's overhead application rate

  What proportion of the population would score higher

what proportion of the population would score higher than Bob and what proportion of commutes would be longer than 80 minutes and less than 50 minutes?

  Purpose an income statement through gross profit

Purpose an income statement through gross profit and Prepare an income statement through gross profit for the year ended December 31, 2007

  Illustrate what is the value of nebula stock to an investor

Nebula currently pays a dividend of $0.50 per share. Illustrate what is the value of Nebula stock to an investor who requires a 14 percent rate of return?

  What role might decentralization play

Denny has assured Austin that the information is accurate and that the expenses are properly classified and Do you believe this situation is  more  likely or  less  likely to occur in larger v. smaller companies? What role might decentralization play..

  Distributed between common and preferred stockholders

Dividend decisions - How should this dividend be distributed between common and preferred stockholders? Show your calculations.

  Decision analysis based on carrying and ordering cost

Decision analysis based on carrying and ordering cost - Which of the ordering costs would Carolina's controller take into account in performing short-run decision analysis?

  Evaluate the amount to be reported as the cost of the land

Evaluate the amount to be reported as the cost of the land

  Effect of errors in journalizing and posting

Effect of errors in journalizing and posting on trial balance and bookkeeper for Shirley Temple's dance studio made the following errors in journalizing and posting

  Evaluate the total cost of the potential job

Evaluate the total cost of the potential job using traditional overhead application (i.e. direct labor hours to assign overhead)

  Compute the total asset turnover rate

Prepare a classified balance sheet with a proper heading on a spreadsheet. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities a..

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