FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

kindly answer n0. 41, thank you

Moon View Desert Homes constructed a subdivision of upscale homes north of Cave Creek,
Arizona, during 2016 and 2017 under contract with Empire Development. Relevant data are:
Contract Amount
2,000,000
2016
2017
Cost
$
800,000
600,000
Gross Profit
350,000
250,000
Contract Billings
1,000,000
1,000,000
Moon View uses the percentage-of-completion method to recognize revenue
C. 40 What would be the journal entry made in 2016 to record revenue?
Debit
Credit
A. Accounts receivable
1,000,000
Revenue from Long-term contracts
1,000,000
B. Accounts receivable
1,350,000
Gross profit
350,000
Revenue from Long-term contracts
1,000,000
C. Construction in progress
350,000
Cost of construction
800,000
Revenue from Long-term contracts
1,150,000
D. Accounts receivable
1,000,000
Billings in excess of cost
350,000
Revenue from Long-term contracts
1,350,000
A.
41. In its December 31, 2003 balance sheet, Moon View would report:
A. The asset, cost and profits in excess of billings of $150,000.
B. The liability, billings in excess of cost of $200,000.
C. The asset, contract amount in excess of billings of $1,000,000.
D.
The asset, deferred profit of $ 400,000.
expand button
Transcribed Image Text:Moon View Desert Homes constructed a subdivision of upscale homes north of Cave Creek, Arizona, during 2016 and 2017 under contract with Empire Development. Relevant data are: Contract Amount 2,000,000 2016 2017 Cost $ 800,000 600,000 Gross Profit 350,000 250,000 Contract Billings 1,000,000 1,000,000 Moon View uses the percentage-of-completion method to recognize revenue C. 40 What would be the journal entry made in 2016 to record revenue? Debit Credit A. Accounts receivable 1,000,000 Revenue from Long-term contracts 1,000,000 B. Accounts receivable 1,350,000 Gross profit 350,000 Revenue from Long-term contracts 1,000,000 C. Construction in progress 350,000 Cost of construction 800,000 Revenue from Long-term contracts 1,150,000 D. Accounts receivable 1,000,000 Billings in excess of cost 350,000 Revenue from Long-term contracts 1,350,000 A. 41. In its December 31, 2003 balance sheet, Moon View would report: A. The asset, cost and profits in excess of billings of $150,000. B. The liability, billings in excess of cost of $200,000. C. The asset, contract amount in excess of billings of $1,000,000. D. The asset, deferred profit of $ 400,000.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education