Percentage of Completion Method: It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period. Completed Contract Method: It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done. The cumulative effect after tax.

Question

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Answer 1

Question

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

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Answer 2

Question

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

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Answer 3

Question

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

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Answer 4

Question

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

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Answer 5

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

Answer 6

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

Answer 7

Chapter 21, Problem 21.5P

a.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

The cumulative effect after tax.

Answer 8

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

Answer 9

b.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: Journal entry to record the change in method effective January 1, 2023.

Answer 10

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

Answer 11

c.

To determine

Percentage of Completion Method:

It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.

Completed Contract Method:

It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.

To prepare: The footnote for the accounting method change in the financial statement.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3Q Ch. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - Prob. 21.8Q Ch. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...

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