The accounts related to the ski park contract
Course:- Accounting Basics
Reference No.:- EM13868955

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

At December 31, 2010, Roko Co. has two fixed price construction contracts in progress. Both contracts have monthly billings supported by certified surveys of work completed. The contracts are:

a. The Ski Park contract, begun in 2009, is 80% complete, is progressing according to bid estimates, and is expected to be profitable.
b. The Nassu Village contract, a project to construct 100 condominium units, was begun in 2010. Thirty  five units have been completed. Work on the remaining units is delayed by conflicting recommendations on how to overcome unexpected subsoil problems. While the total cost of the project is uncertain, a loss is not anticipated.

1. Identify the alternatives available to account for long term construction contracts, and specify the criteria used to determine which method is applicable to a given contract.
2. Identify the appropriate accounting method for each of Roko's two contracts, and describe each contract 's effect on net income for 2010.
3. Indicate how the accounts related to the Ski Park contract should be reported on the balance sheet at December 31, 2010.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
LOral reports the following income statement accounts for the year ended December 31, 2011 (euros in millions). Prepare the income statement for this company for the year ende
Pass Journal entries for the above transactions of Black and White ltd - Post them to the appropriate Ledger Accounts - Analyse the effects of the transactions on the accounti
You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI=$20,000, vacancy rates are 8%, and operating expenses are $81
you have been appointed as the project manager for a construction company, your first project is to renovating the holiday home of very important foreign client , the client
On August 1, Gridley purchased 140,000 shares and immediately retired the stock. On November 1, 200,000 shares were sold for $25 per share. What is the weighted-average numb
Assume that on December 1, 2015, your company borrowed $ 15,000, a portion of which is to be repaid each year on November 30. Specifically, your company will make the followin
When is management science generally applied? What kinds of problems do management scientists face? Provide an example of a "problem" an organization you have been involved
Why do auditors have to consider the internal controls of the organization?  What are some key elements of internal control?  Which are the most important?  How will the audit