User Account

All Pages

What the amount of gross profit to be recognized for years

Assignment Help Financial Accounting
Reference no: EM132957176

Cullumber Construction Co. uses the percentage-of-completion method. In 2021, Cullumber began work on a contract for $22225000; it was completed in 2022. The following cost data pertain to this contract:

Year Ended December 31                                         2021                 2022

Cost incurred during the year                          $7850000          $5650000

Estimated costs to complete at the end of year     5249000               -

Problem 1: If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be

                            2021                 2022

Option 1:            $0.                $9126000.
Option 2:            $0.                  $8725000.
Option 3:          $8725000.             $(401000).
Option 4:           $9126000.               $0.

Reference no: EM132957176

Questions Cloud

Compute the after-tax cost of debt for the bonds : After flotation costs, Cenage received $780 per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent.
Construct the value chain for a traditional furniture : Construct the value chain for a traditional furniture manufacturer (Six basic steps starting with design? Refer this diagram below
Solve the total market value of equity : Solve the total market value of equity. Transpax Ltd hereafter referred to as "Transpax" or "the company", has been operating in the passenger transport
What is the actual return on plan assets for current year : Projected benefit obligation on January 1 7,200,000. What is the actual return on plan assets for the current year
What the amount of gross profit to be recognized for years : If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be
Leading an organization globally : Locate a peer-reviewed article that discusses how leaders must have a vision when leading an organization globally. Topic ideas include visionary leadership, gl
How much is the consolidated cost of sales : On January 1, 20x1, Rooster Co. acquired 75% interest in Cockerel Co. for 600,000. How much is the consolidated cost of sales
What sandhill would report construction in process : Sandhill Construction Company had a contract starting April 2021, At December 31, 2021 Sandhill would report Construction in Process in the amount of?
What is conflict : What is conflict (cite). What are some of the most prominent negative and positive impacts of conflicts to organizations (cite). State the case study scenario a

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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