Cepparo Ltd. entered into a contract on January 1, 2021, to construct a new hotel for client. The total fixed price for the contract is $35 million. The job was completed in December 2022. Details of the project are as follows: 2021 2022 $20,000,000 $11,000,000 Costs incurred in the period Estimated costs to complete the project 10,000,000 Customer billings in the period Cash collected in the period 18,000,000 17,000,000 17,000,000 15,000,000 Required: Calculate the amount of gross profit to be recognized each year using the percentage of-completion method and prepare all the required journal entries for both years.
Q: Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during…
A: Net income is the amount which comes after deducting of all expenses from total revenues and and it…
Q: php#lockdown ag question Amount of Annual Investment $4,000 Rate $6,000 12% $13,500 Time $22,250 You…
A: Annuity is the series of equal cash payments over the period.
Q: Carolyn has an AGI of $38,000 (all from earned income) and two qualifying children and is filing as…
A: The Earned Income Credit (EIC) is a tax credit available to eligible individuals and families with…
Q: Superior Micro Products uses the weighted-average method in its process costing system. Data for the…
A: The cost per equivalent offers useful information on the effectiveness and profitability of a good,…
Q: Prepare a correct bank reconciliation. (List items that increase cash balance first. Reconcile cash…
A: Bank reconciliation statement is the one which is prepared by the entity to reconcile the balance of…
Q: Homework s During Heaton Company's first two years of operations, it reported absorption costing net…
A: S.NoMarginal CostingAbsorption Costing1As the name suggest itself variable cost is considered in…
Q: Marriott Hotels purchased eight iRobot Roomba i7+ for $940 each. It received a 15% discount for…
A: Answer:- Cash discount meaning:- Cash discounts are incentives provided by a seller to a buyer in…
Q: Pharoah Company uses a periodic inventory system and its accounting records include the following…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Romano's Frozen Pizza Inc. has determined from its production budget the following estimated…
A: Budgets are quantitative statements that contain the details of the planned revenues, expenditures,…
Q: Monty Corporation issued 3,600, five year, 4% bonds at 104 on January 1, 2023. Interest is paid…
A: The accounting for the convertible bond requires recording its Liability portion and equity portion…
Q: Statament 1: If the value in use is higher than the carrying amount of the asset, the fair value…
A: The impairment assessment involves comparing the carrying amount (CA) of the asset with its…
Q: Cash Accounts receivable Inventory Land Building and equipment Accounts payable Salaries payable…
A: Unsecured debt is a typical kind of loan that is not secured by anything. Essentially, the…
Q: Sargasso Company offers two products. At present, the following represents the usual results of a…
A: Break even point is a level at which there is no profit no loss. here, fixed cost is the amount…
Q: Required information [The following information applies to the questions displayed below) Lawson…
A: Balance sheet is the financial statement that records all the assets, liabilities and stockholders'…
Q: Question Content Area Barbara Co. presents the following information: CostRetailNet markups $…
A: The average cost retail inventory method is a method used by retailers to estimate the value of…
Q: Market Sales had $1,224,000 in sales last month. The variable costal ratio was 60% and operating…
A: Fixed costs are those costs which do not change with change in activity level. Variable costs are…
Q: ans in 2-hour blocks. Each session includes the use of the facilities, a digital recording of the…
A: Total cost is the cost incurred including both the product cost and the period cost . Thus it is the…
Q: X purchased a machinery on 1st January 2017 fort. 4,80,000 and spent t 20,000 on its installation.…
A: Under this method, depreciation expense is calculated as a fixed percentage of the asset's net book…
Q: Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations,…
A: Whenever comparing budgeted and actual result the difference is known as Variance and the variance…
Q: Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional…
A: In variable costing all variable cost group together regardless of total product cost.it includes…
Q: QS 11-4 (Algo) Issuance of no-par common stock LO P1 Prepare the journal entry to record Autumn…
A: A journal entry is a fundamental accounting record that captures the details of a specific financial…
Q: Comparative data on three companies operating in the same industry follow. The minimum required ROI…
A: 1. Ratios are calculated using following formulas -Using the Formulas:Profit Margin Net Operating…
Q: Prepare a multiple-step statement of financial performance for the year ended December 31, 2023,…
A: It is a type of income statement in which all income and expenses are divided into multiple…
Q: Discuss different types of audit risks.
A: Audit risks refer to the various factors that may affect the accuracy and reliability of financial…
Q: Required information E7-10 Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO…
A: Gross Profit -Gross Profit is a profit included in the sales value of the company. It is calculated…
Q: January 1 - 40,000 meters December 31 - 10,000 meters The Production Budget indicates that 450,000…
A: Budgeting -Budgeting is the process of estimating future operations based on past performance. % are…
Q: 22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for…
A: Variable Costing -In this costing method, variable costs are considered while preparing the cost of…
Q: Cash Flow from Operating Activities Prior Year Activity for Seville Corporation: Accounts payable…
A: Cash Flow Statement -The Cash Flow Statement includes the inflow and outflow of cash during the…
Q: Required information Problem 09-45 (LO 09-2) (Algo) [The following information applies to the…
A: SECTION 724 deals with Character of gain or loss on contributed unrealized receivables, inventory…
Q: Bramble Ltd. had the following comparative statement of financial position: Cash Bramble Limited…
A: The cash flow statement is produced at year-end to report the change in cash. It provides…
Q: Exercise 7-33 (Algo) Prorate Under- or Overapplied Overhead (LO 7-3) Antoine Machining estimated its…
A: Applied overhead is an estimation or allocation of costs, and it may differ from the actual overhead…
Q: Wildhorse Paints makes various interior and exterior paints for its customers, but its current focus…
A: Direct material cost is the cost of raw material produced or purchased for producing the final…
Q: The Johnson Corporation reported the following costs for the manufacture of 51,000 units: (a) direct…
A: The unit cost is calculated as total cost divided by number of units produced. The ending inventory…
Q: How can sales and lease contracts be effectively structured to align incentives and maximize…
A: The objectives of the seller's profitability and the lessee's value expectations must be balanced in…
Q: María, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the…
A: ParticularsWith IRA ContributionWithout IRA ContributionGross Income $…
Q: 25 THE WEEKUFA QS 21-8 (Algo) Contribution margin per unit and break-even units LO P2 Viva sells its…
A: Variable costs are costs which changes along with change in activity level. Contribution margin is…
Q: Nov. 28 Dec. 31 Dec. 31 3 Il wanted to recognize the efforts of a key employee and offered him the…
A: Shareholder Equity -Equity held by shareholders refers to the sum that a company's founders have…
Q: The Model Company is to begin operations in April. It has budgeted April sales of $36.000, May sales…
A: Budgeting -Budgeting is a technique of estimating future sales and expenses on the basis of past…
Q: A strategy of product leadership can also be called which of the following? O Cost leadership Lean…
A: Cost accounting refers to the recording of the overall cost of production by considering the…
Q: Levine Inc., which produces a single product, has prepared the following standard cost sheet for one…
A: The difference between the amount of materials actually utilized and the amount projected to be used…
Q: On December 1, 2022, Olympia Hot Yoga issued a note payable to Columbia Bank for $45,000 with an…
A: Under accrual basis of accounting expenses are recorded when incurred irrespective of whether paid…
Q: Purchases and Cash Payments Journals Happy Tails Inc. has a September 1, 20Y4 accounts payable…
A: Purchase journal is prepared by the organizations to record the purchases on account. When the goods…
Q: In 2019, José purchased a house for $191,400. He used the house as his personal residence. In June…
A: The residential property is the house that is used by the taxpayer for other own living and the…
Q: [The following information applies to the questions displayed below] Following is information on an…
A: NPV stands for Net Present Value. It is a financial metric used to assess the profitability and…
Q: Journal entry worksheet 1 14 15 18 The business agreed to provide 6 weeks of training services to a…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Required information [The following information applies to the questions displayed below.] Delph…
A: The manufacturing costs comprises direct materials, direct labor and overhead applied. The overhead…
Q: Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on…
A: The overhead rate is a cost allocated to the production of a product or service. Overhead costs are…
Q: What is the purpose of financial accounting and how does it differ from managerial accounting?
A: Financial accounting is a branch of accounting that focuses on the preparation, recording, analysis,…
Q: On December 31, 2020, Berclair Inc. had 280 million shares of common stock and 3 million shares of…
A: Basic EPS = ( net income - preference dividend ) / Weighted average number of common shares…
Q: On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams…
A: Partnership Business: According to the definition, a partnership business is comprised of two or…
Please help me.
Thankyou.
Step by step
Solved in 4 steps
- Cepparo Ltd. entered into a contract on January 1, 2021, to construct a new hotel for a client. The total fixed price for the contract is $35 million. The job was completed in December 2022. Details of the project are as follows: 2021 2022 $20,000,000 $11,000,000 Costs incurred in the period Estimated costs to complete the project 10,000,000 Customer billings in the period Cash collected in the period 18,000,000 17,000,000 17,000,000 15,000,000 Required: Calculate the amount of gross profit to be recognized each year using the percentage- of-completion method and prepare all the required journal entries for both years.Swifty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $894,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $263,120 $412,620 $607,000 Estimated costs to complete 334,880 185,380 –0– Progress billings to date 272,000 545,000 894,000 Cash collected to date 242,000 495,000 894,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated…Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $609,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $266,640 $412,080 $617,000 Estimated costs to complete 339,360 193,9200 –0– Progress billings to date 270,000 545,000 896,000 Cash collected to date 240,000 495,000 896,000 A/ Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross profit recognized in 2022: B/ Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross…
- ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…
- On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 –0– Progress billings to date 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,000 Instructions a. Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. b. Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.Rogers Ltd. has entered into a contract beginning in February 2020 to build two warehouses for ocean Ltd. The contract is a non-cancellable fixed price contract for $9.4 million. The following data pertain to the construction period. 2020 2021 2022 Costs for the year $3,285,000 4,015,000 1,800,000 Estimated costs to complete 4,015,000 1,825,000 -0- Progress billings for the year (non-refundable) 2,960,000 3,440,000 3,000,000 Cash collected for the year 2,605,000 3,490,000 3,305,000 a) Using the percentage-of-completion method, calculate the percent complete for each year of the contract. b) Calculate the amount of the gross profit to be recognized each year of the contract. c) Prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) d) What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? Show how the construction contract would be reported on the SFP…
- Triple Take Construction Co, began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project. 2018 4,500,000 5,500,000 4,320,000 3,240,000 2019 7,520,000 1,880,000 7,680,000 5,760,000 2017 Costs Incurred to Date Estimated Costs to Complete Progress Billings to Date Cash Collection for the Year 2,160,000 6,840,000 | 2,304,000 1,728,000 How much is the gross profit/loss realized in 2018?Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liabilityIn 2021, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions): Accounts receivable, 12/31/2021 (from construction progress billings) $ 37.5 Actual construction costs incurred in 2021 $ 135 Cash collected on project during 2021 $ 105 Construction in progress, 12/31/2021 $ 207 Estimated percentage of completion during 2021 60 % How much cash remains to be collected by CCC on the project?