### Compute the revenue and expense for each four years

Assignment Help Accounting Basics
##### Reference no: EM131524192

Question 1 -

Free Form Builders Inc., a construction company, recognizes revenue from its long-term contracts using the percentage-of-completion method. On March 29, 2017, the company signed a contract to construct a building for \$600,000. The company estimated that it would take four years to complete the contract and estimated the cost to the company at \$425,000 - the expected costs in each of the four years are as follows:

 Year Cost 2017 \$110,750 2018 \$100,500 2019 \$184,250 2020 \$29,500 Total \$425,000

Prior to closing its books for the year ended December 31, 2018, management revised its estimates for the costs in 2019 and 2020. It estimated that it would cost \$300,000 in 2019 and \$100,000 in 2020 to complete the contract.

Required: Compute the revenue, expense, and profit/loss for each of the four years. Assume that actual costs incurred each year were the same as expected/estimated/revised costs.

Question 2 -

The following information relates to the Investments at fair value through Profit and Loss (FVTPL) of Anders Corp.

 Security Acquisition Date Acquisition Cost Date Sold Selling Price Market Value Dec. 31 2016 2017 2018 Alpha Apr. 31, 2016 \$60,000 NA NA \$68,000 \$72,000 \$69,000 Beta Aug. 24, 2016 45,000 May 27, 2017 62,000 48,000 NA NA Delta Jan. 8, 2017 35,000 NA NA NA 38,000 41,000 Omega Jan. 3, 2018 95,000 June 30, 2018 100,000 NA NA NA

The Anders Corp. closes its books on December 31 each year.

["NA" means not applicable.]

Required:

a. Prepare journal entries relating to these Investments at fair value through Profit and Loss (FVTPL) for each year. (There are NO brokerage fees.)

b. Show how the information regarding Investments at fair value through Profit and Loss (FVTPL) would be presented on the income statement and balance sheet for each year.

Attachment:- Assignment and Template.rar

### Reviews

#### len1524192

6/9/2017 5:32:58 AM

Please use the attached templates in presenting your answers. These responses do not have to be typed. Find the question attached. Show how the information regarding Investments at fair value through Profit and Loss (FVTPL) would be presented on the income statement and balance sheet for each year.

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