What should be the gross profit recognized
Course:- Accounting Basics
Reference No.:- EM132017963

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

Question - Windsor Construction Company uses the percentage-of-completion method of accounting. In 2014, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2014:

• Costs incurred during the year $1,400,000

• Estimated costs to complete as of December 31 2014, $600,000

• Billings during the year $1,000,000

• Collections during the year $900,000

What should be the gross profit recognized in 2014?





Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
A firm reports EBIT of $100 million. The income statement shows depreciation of $20 million. If the tax rate is 35% and total capital expenditures and increases in workin
Explain how each of the events would affect the accounting equation by writing the letter and NA for does not affect under each of the components of the accounting equation
After all bills for the party were paid, the total came to $2,315. Details are $575 for hotel room rental, $640 for food, $750 for entertainment, and $350 for decorations. 1
Over what range of pressures would you have it operate? Explain your reasoning. Calculate the COP for your design, and compare to the COP of an ideal Carnot refrigerator ope
Bonds payable with a par value of $900,000, which are dated January 1, 2014, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annu
Incremental analysis is a problem-solving approach that utilizes accounting information to assist in decision making. It is applied when more than one alternative is present
Discuss the major types of fraud you might find in auditing the financial statements of a client.What conditions are generally present, how should the auditor assess the ris
Your team is to prepare two separate lists of questions that enable you to complete a reliable CVP analysis of this situation. One list is to be answered by the school's adm