User Account

All Pages

Norman industries uses the percentage of completion method

Assignment Help Accounting Basics
Reference no: EM13603060

Norman Industries uses the percentage of completion method of accounting for construction contracts. In 2011 Norman Industries entered into a contract to build a commercial building with a contract price of $6,000,000 for Jones Ltd. The details relating to the contract are as follows:

2011 2012 2013
$ $ $
Costs incurred during the year 700,000 2,500,000 3,000,000
Estimated costs to complete at 30 June 4,600,000 3,000,000 0
Billings during the year 1,440,000 2,500,000 2,060,000
Collections during the year 1,000,000 2,400,000 2,000,000

Norman Industries has a financial year ends on 30 June.

Required:

(a) Calculate the amount of profit to be recognised by Norman Industries for the three years.

(b) Prepare the general journal entries for all three years, assuming the outcome of the contract can be reliably estimated.

Note: round all figures to the nearest dollar, and leave all percentages with two decimal places.

Reference no: EM13603060

Questions Cloud

Based on these data the lower limit for the difference : the ncaa is interested in estimating the difference in mean number of daily training hours for men and women athletes
For purposes of the following problems you may assume : in april 2010 the worst oil spill until that time occurred when an explosion and fire on the deepwater horizon left 11
Calculate the heat emitted to the environment btusec the : a 600 mw coal-fired power plant has an overall thermal efficiency of 38. it is burning coal that has a heating value of
A 28-year-old woman is admitted to a local hospital : a 28-year-old woman is admitted to a local hospital emergency room complaining of sharp chest pains on her right side.
Norman industries uses the percentage of completion method : norman industries uses the percentage of completion method of accounting for construction contracts. in 2011 norman
Find the specific work of the turbine 2 find the specific : a steam power plant operating in a rakine cycle has saturated vapor at 600 lbfin2 leaving the boiler. the turbine
Suppose that the managers wished to test whether there is a : a major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use
Under the periodic inventory system village fabrics : under the periodic inventory system village fabrics purchased 25 yards of blue plaid fabric at a cost of 2.00 per yard
Determine the stress in ab and bc as well as the : the gap at c is initially 0.15mm before load p is applied. for p200kn the gap will close. determine the stress in ab

Reviews

Write a Review

Accounting Basics Questions & Answers

  Total cash dividends and dividends per share

Determine the total cash dividends and dividends per share paid to the preferred and common stockholders during each of the three years.

  Information about occupational fraud and abuse

Explain the impact of occupational fraud and abuse on the company. Explain the four potential corruption schemes to be aware of within the company?

  Fancy furniture produced a batch of 2000 coffee tables at a

fancy furniture produced a batch of 2000 coffee tables at a cost of 355000. it was discovered that the entire batch was

  Prepare a master budget including budgeted income statement

Prepare a master budget including a budgeted income statement, balance sheet, statement of cash receipts and disbursements, and supporting schedules for the months January through March 2008.

  Government-wide financial statements

Prepaeration of government-wide financial statements requires the elimination from fund-bases statements of

  Ending inventory in a retail establishment

Carson Inc., a retail establishment, expects sales of $500,000 of a particular item in March. Its gross profit percentage is 60 percent.

  The sales manager argues that because the present 811 per

nbspmidwest mills has a plant that can mill wheat grain into a cracked wheat cereal and then further mill the cracked

  Compute the machines payback period

Monterey Corporation is considering the purchase of a machine costing $52,000 with a 4-year useful life and no salvage value. Monterey uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received unifor..

  Describes gasb requirements for accounting

describes GASB requirements for accounting for Investment Trust Funds. Include a discussion of when the use of investment trust funds is appropriate;the investments to be included and excluded; the basis at which investments are to be reported;rep..

  Depreciation expense for the year was 72800 in silkens 2014

silken corp. reported net income of 420000 for 2014. changes occurred in several balance sheet accounts as

  One of cornells staff accountants wants to reject the

cornell corporation manufactures faucets. several weeks ago the firm received a special-order inquiry from yale inc.

  What do you think the effect would be if congress changes

What do you think the effect would be if Congress changes the law so that retirement plan contributions are included in taxable income at the time they are made rather than taxing the payment when received in retirement?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd