User Account

All Pages

What theoretical justification is there for widjaja company

Assignment Help Accounting Basics
Reference no: EM131119481

Long-Term Contract-Percentage-of-Completion Widjaja Company is accounting for a long-term construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company.

(a) What theoretical justification is there for Widjaja Company's use of the percentage-of-completion method?

(b) How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements.

(c) How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion?

(d) What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.
(AICPA adapted) 

Reference no: EM131119481

Questions Cloud

Explain why management may tend to pursue goals : Explain why management may tend to pursue goals other than shareholder wealth maximization.
Manager of environmental health and safety : You are employed by a local health department as manager of environmental health and safety, and one of your big cities is facing increased outbreaks of foodborne illnesses:
Create a program could perform over an array of items : Create a program could perform over an array of items that would be used by a small business. Your task must include the following: Declaring array, Populating the array and Processing the items in the array.
Treatment for heart disease : A 78-year old patirnt is scheduled for traitment to home after treatment for heart disease. The patient's spouse, who has chtonic obstructive pulmonary disease, plans to care for the patient at home
What theoretical justification is there for widjaja company : How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion?
Design and implement an application that reads a sentence : Design and Implement an application that reads a sentence from user and reverses the sentence. Use a stack to reverse the sentence.
How would you classify the estimated sales returns stemming : Does the proposed plan achieve the goals of increasing the current ratio and decreasing the debt to equity ratio?
Explain why these social responsibility activities : It has been argued that shareholder wealth maximization is not a realistic normative goal for the firm, given the social responsibility activities that the firm is “expected” to engage in (such as contributing to the arts, education, etc.). Explain w..
Determine your approach would not work for every country : Propose one strategic idea that could launch a regionally famous American product into the global market. Provide two examples to support your idea, and determine whether your approach would or would not work for every country. Support your respon..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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