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Accounting - Multiple problems




Question;1. (TCO A) Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:Total Construction Fixed Price $8,000,000Construction Start Date March 3, 2012Construction Complete Date December 4, 2013As of Dec 31? 2012 2013Actual cost incurred $2,500,000 $3,150,000Estimated remaining costs $3,750,000 $-Billed to customer $2,400,000 $5,300,000Received from customer $2,250,000 $5,400,000Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?1. $2,000,0002. $2,350,0003. $1,650,0004. $940,0002. (TCO A) Kerry Corp purchased a used bottling machine from Bob's Bottling Inc. on Jan 1, 2012 for $2100000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $1575000. Kerry paid with $300000 cash and a note for $1800000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $600000. Kerry Corp made their first payment on Jan 1, 2013 of $780000 which included interest of $180000 to date of payment.As of Dec 31, 2013 Bob has deferred gross profit of?1. $255,0002. $330,0003. $375,0004. $300,0003. (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional information was provided:As of Dec 31?. 2012 2013Percentage of completion 15% 40%Estimated total expected costs $550,000 $580,000Gross profit recognized (Cumulative) $50,000 $99,000Contracted costs incurred during 2013 were? (Points: 5)1. $145,0002. $149,5003. $151,0004. $232,0004. (TCO A) In industries with high rates of return (such as a magazine distribution company) an alternative method of revenue recognition would be? record sales net of an estimate of expected future returns? record sales in current period and returns in future periods as they occur? do not record any sales until expiration of all return privileges have passed? all of the above


Paper#42317 | Written in 18-Jul-2015

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