It has been suggested that singing releases stress and Karaoke is a perfect cure to all...

 

Transcribed Image Text:

It has been suggested that singing releases stress and Karaoke is a perfect cure to all the pent-up emotions. Due to an increased number of stern students crying during Accounting exams, Firm Y was hired to construct a Karaoke room in KMEC. In 2020, Firm Y began construction work of the room under a three-year-contract. The contract price was $25,000. Firm Y uses the percentage-of-completion method based on costs incurred for financial reporting. Information related to this contract can be found on Firm Y's income statements at the end of 2020: Income Statement Construction Revenue Construction Expense Net Income Required: 1.1 5 points 1.2 8 points 1.3 2 points $5,000 $2,000 $3,000 What was the Total Initial Estimated Cost on this contract? In 2021, Firm Y incurred an additional $4,000 in construction cost. Firm Y also revised its total estimated cost on this contract to be $6,000 higher. What are Contruction Revenue, Construction Expense and Net Income for 2021? Explain why POC revenue is often regarded as "soft" revenue. It has been suggested that singing releases stress and Karaoke is a perfect cure to all the pent-up emotions. Due to an increased number of stern students crying during Accounting exams, Firm Y was hired to construct a Karaoke room in KMEC. In 2020, Firm Y began construction work of the room under a three-year-contract. The contract price was $25,000. Firm Y uses the percentage-of-completion method based on costs incurred for financial reporting. Information related to this contract can be found on Firm Y's income statements at the end of 2020: Income Statement Construction Revenue Construction Expense Net Income Required: 1.1 5 points 1.2 8 points 1.3 2 points $5,000 $2,000 $3,000 What was the Total Initial Estimated Cost on this contract? In 2021, Firm Y incurred an additional $4,000 in construction cost. Firm Y also revised its total estimated cost on this contract to be $6,000 higher. What are Contruction Revenue, Construction Expense and Net Income for 2021? Explain why POC revenue is often regarded as "soft" revenue.

Answer rating: 100% (QA)

For the first question the Total Initial Estimated Cost on this contract is not explicitly stated in ... View the full answer