Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable. The gross profit and revenue to be recognized each year.

Question

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Answer 1

Question

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

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Answer 2

Question

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

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Answer 3

Question

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

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Answer 4

Question

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

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Answer 5

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

Answer 6

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

Answer 7

Chapter 8, Problem 8.9P

a.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The gross profit and revenue to be recognized each year.

Answer 8

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

Answer 9

b.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The journal entries required for each year of the contract.

Answer 10

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

Answer 11

c.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit throughout production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

Answer 12

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

Answer 13

d.

To determine

Percentage of completion method: This is a method for revenue recognition that is based on the percentage of work completed. This method identifies the gross profit over the period of production. The percentage of completion method is useful when goods and services transferred over time are reasonably measurable.

The net assets or liability for each year of the contract.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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. 8.4Q Ch. 8 - Prob. 8.5Q Ch. 8 - How is a performance obligation defined?Ch. 8 - What are the two criteria to define a good or...Ch. 8 - Prob. 8.8Q Ch. 8 - What principles regarding timing and measurement...Ch. 8 - Prob. 8.10Q

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