Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 8, Problem 8.10P
a.
To determine
The gross profit for each year.
b.
To determine
To prepare:
c.
To determine
To prepare: T-accounts for construction in progress, billing on construction in progress and accounts receivables.
e.
To determine
Net assets or liability for each year.
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Students have asked these similar questions
In 20x1, ABC Co. enters into a contract to construct a building
for a customer. ABC identifies its performance obligation to be
satisfied over time. ABC measures its progress on the
contract based on costs incurred. The contract price is
P20,000,000. ABC has an unconditional right to all billings
made in accordance with the billing schedule stated in the
contract. Information on the construction is as follows:
20x1
20x2
Contract costs incurred
per year
Billings per year
Collections on billings
20x3
8,160,000 7,320,000
1,920,000
10,000,000 7,000,000 3,000,000
9,500,000 6,650,000 3,850,000
per year
Estimated costs to
1911
complete (at each
year-end)er from the Student Ha8,840,000 of 1,720,000
"Cheating during examinations, quizzes or plagiarism in connection
with any academic work, abetting of the same: 1st violation-
How much profit is recognized on the contract in 20x3?
suspension with invalidation of grade; 3rd violation- suspension
In 20x1, ABC Co. enters into a contract to construct a building
for a customer. ABC identifies its performance obligation to be
satisfied over time. ABC measures its progress on the
contract based on costs incurred. The contract price is
P20,000,000. ABC has an unconditional right to all billings
made in accordance with the billing schedule stated in the
contract. Information on the construction is as follows:
20x1
20x2
20x3
Contract costs incurred
per year
Billings per year
Collections on billings
per year
Estimated costs to
8,160,000 7,320,000
1,920,000
10,000,000 7,000,000 3,000,000
9,500,000 6,650,000 3,850,000
complete (at each
year-end)
8,840,000 1,720,000
How much profit is recognized on the contract in 20x3?
In 20x1, ABC Co. enters into a contract to construct a building
for a customer. ABC identifies its performance obligation to be
satisfied over time. ABC measures its progress on the
contract based on costs incurred. The contract price is
P20,000,000. ABC has an unconditional right to all billings
made in accordance with the billing schedule stated in the
contract. Information on the construction is as follows:
20x1
20x2
20x3
Contract costs incurred
per year
Billings per year
Collections on billings
per year
1,920,000
3,000,000
5,650,000 3,850,000
8,160,000 7,320,000
10,000,000
500,000 6600,000
Estimated costs to
complete (at each
year-end) from the Student Ha8,840,000 1,720,000
ons, quizzes
rection
with any academic work, abetting of the same: 1st violation
How much profit is recognized on the contract in 20x3?
Chapter 8 Solutions
Intermediate Accounting
Ch. 8 - What are the primary issues involved in revenue...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - Prob. 8.4QCh. 8 - Prob. 8.5QCh. 8 - How is a performance obligation defined?Ch. 8 - What are the two criteria to define a good or...Ch. 8 - Prob. 8.8QCh. 8 - What principles regarding timing and measurement...Ch. 8 - Prob. 8.10Q
Ch. 8 - What is variable consideration and what factors...Ch. 8 - Describe and contrast the two approaches used to...Ch. 8 - Prob. 8.13QCh. 8 - What factors should accountants consider to...Ch. 8 - Prob. 8.15QCh. 8 - How does a seller account for any consideration...Ch. 8 - Prob. 8.17QCh. 8 - What are the two exceptions to the general rule...Ch. 8 - What are the three criteria required to recognize...Ch. 8 - When an entity does not meet the three criteria...Ch. 8 - Prob. 8.21QCh. 8 - Prob. 8.22QCh. 8 - How does a firm estimate the degree completed...Ch. 8 - Can a firm record inventory out on consignment as...Ch. 8 - What method do agents in a transaction use to...Ch. 8 - Prob. 8.26QCh. 8 - What qualitative disclosures do the standards...Ch. 8 - All of the following are elements of a contract...Ch. 8 - Prob. 8.2MCCh. 8 - Telecom Co. enters into a two-year contract with a...Ch. 8 - The transaction price must reflect the time value...Ch. 8 - Prob. 8.5MCCh. 8 - When allocating the transaction price to separate...Ch. 8 - Which of the following indicators is not...Ch. 8 - During Yoar 1 Moriwothor Construction Company...Ch. 8 - All of the following are indicators that the...Ch. 8 - Prob. 8.10MCCh. 8 - Prob. 8.11MCCh. 8 - Identify a Contract with a Customer. Complete the...Ch. 8 - Prob. 8.2BECh. 8 - Identifying Performance Obligations. Perfect Party...Ch. 8 - Identifying Performance Obligations. Perfect Party...Ch. 8 - Estimating Variable Consideration. Gear Garage...Ch. 8 - Estimating Variable Consideration. Using the...Ch. 8 - Estimating Variable Consideration. Sellet...Ch. 8 - Estimating Variable Consideration. Seliet...Ch. 8 - Prob. 8.9BECh. 8 - Allocation of Transaction Price. Martin Software...Ch. 8 - Prob. 8.11BECh. 8 - Allocation of Transaction Price. Sycamore Sidewalk...Ch. 8 - Allocation of Transaction Price. Sycamore enters...Ch. 8 - Prob. 8.14BECh. 8 - Allocation of Transaction Price. Using the...Ch. 8 - When to Recognize Revenue. For each scenario...Ch. 8 - Prob. 8.17BECh. 8 - Prob. 8.18BECh. 8 - Prob. 8.19BECh. 8 - Prob. 8.20BECh. 8 - Sales with the Right of Return. Both incorporated...Ch. 8 - Sales with the Right of Return. Using the...Ch. 8 - Sales Returns. Historically, about 5% or the...Ch. 8 - Sales on Consignment. Hanna Lighting recertify...Ch. 8 - Determining Performance Obligations. Pagit Inc, a...Ch. 8 - Prob. 8.2ECh. 8 - Estimating Variable Consideration. King Rat Pest...Ch. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Allocation of Variable Consideration. Green-Up Inc...Ch. 8 - Allocation of Variable Consideration. Green-Up Inc...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Determination of When to Recognize Revenue. Far...Ch. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Other Principal Agent Transactions, Net Revenue...Ch. 8 - Prob. 8.1PCh. 8 - Prob. 8.2PCh. 8 - Comprehensive Revenue Recognition Problem. Casale...Ch. 8 - Prob. 8.4PCh. 8 - Determining When to Recognize Revenue. Megrew...Ch. 8 - Prob. 8.6PCh. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.10PCh. 8 - Prob. 8.11PCh. 8 - Prob. 8.12PCh. 8 - Prob. 1JCCh. 8 - Prob. 1FSCCh. 8 - Prob. 2FSCCh. 8 - Prob. 1SSCCh. 8 - Prob. 1BCC
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