+1-415-670-9189
info@expertsmind.com
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.

Required:
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
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent and the market risk premium is 5.26 percent. What is the expected rate of return
Compute the number of units to be produced that would appear on the company's production budget for the month of June.324,400 units.301,060 units.264,600 units.294,000 units.2
The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2013, the end of its fiscal year: cash, $16,000; accounts receivable, $11,00
Calculate the cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee p
Draw Jim's budget line (throughout, please put coffee on the vertical axis)-Use a budget line-indifference curve map analysis to explain which pricing scheme Jim prefers.
Cost benefit analysis is just "nonsense on silts". Discuss this view with particular emphasis on the relevance of CBA to the personnel specialist.
What amount will be included in intangible assets on the company's December 31, 2008 financial statements prepared in accordance with IFRS? How much would be included in int
Local Landscaping uses a job-order costing system to track the costs of its landscaping proj- ects. The company provides complete garden design and landscaping services. The