(Answered) Question long-term contract with interim loss on march 1

Accounting

Question: (Long-Term Contract with Interim Loss) On March 1, 2014, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2016. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2014, 2015, and 2016 are given below.

(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2014, 2015, and 2016. (Ignore income taxes.)

(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2014, 2015, and 2016. (Ignore incomes taxes.)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92400813
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - during 2018 liangs book store paid 485000 for

Question - During 2018, Liang's Book Store paid $485,000 for land and built a store in Cleveland, Ohio. Prior to construction, the city of Cleveland charged Liang's $1,700 for a building permit, which Liang's paid. Liang ...

Question - on january 1 2017 lance co issued five-year

Question - On January 1, 2017 Lance Co. issued five-year bonds with a face value of $840,000 and a stated interest rate of 8% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value ...

Question - x companys profit equation next year is expected

Question - X Company's profit equation next year is expected to be 0.47R-$12,900, where R is total revenue. Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of ...

Question - vestorville company reported the following

Question - Vestorville Company reported the following results from last year's operations Sales 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income 200,000 Average ...

Question competencyevaluate the proper accounting for

Question: Competency Evaluate the proper accounting for transactions with respect to interim and segment reporting using the accounting codification and other accounting research tools. Scenario: CM Corporation (CMC) was ...

Question - as a senior accountant you had just prepared and

Question - As a senior Accountant you had just prepared and posted the journal entry that closed the revenue accounts to the income summary Account. You then noticed that your bookkeeper made a tragic error in recording ...

Question - on january 1 2019 green inc issued stock options

Question - On January 1, 2019, Green Inc. issued stock options for 200,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, th ...

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Part abackgroundsaturn petcare australia and new zealand is

Part A Background: Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their first m ...

Question - merchandise accounts and computationskleiner

Question - Merchandise accounts and computations Kleiner Merchandising Company Accumulated depreciation$700 Beginning inventory 5,000 Ending Inventory 1,700 Expenses 1,450 Net Purchases 3,900 Net Sales 9,500 Krug Service ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert