You have a contract for $200,000. The following events occur: March 1 the project starts ...
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You have a contract for $200,000. The following events occur: March 1 the project starts • March 20- The subcontractors bill for $80,000 to the contractor • Between March 1 and March 31 - 45% of the contract was completed • April 10 - The subcontractor was paid $80,000 • April 20 - The subcontractors billed $100,000 to the contractor • Between April 1 and April 30 - 55% of the contract was completed • April 30 - the project ends and the contractor billed the owner in full. • May 10 - The contractor paid $100,000 to the sub-contractors. • May 20- the owner paid the contractor $200,000 Determine when revenues and expenses are recognized on the accrual method? Fill in the relevant financial activities below. Revenues Expenses March $ April $ +A May $ LA You have a contract for $200,000. The following events occur: March 1 the project starts • March 20- The subcontractors bill for $80,000 to the contractor • Between March 1 and March 31 - 45% of the contract was completed • April 10 - The subcontractor was paid $80,000 • April 20 - The subcontractors billed $100,000 to the contractor • Between April 1 and April 30 - 55% of the contract was completed • April 30 - the project ends and the contractor billed the owner in full. • May 10 - The contractor paid $100,000 to the sub-contractors. • May 20- the owner paid the contractor $200,000 Determine when revenues and expenses are recognized on the accrual method? Fill in the relevant financial activities below. Revenues Expenses March $ April $ +A May $ LA
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Answer rating: 100% (QA)
Based on the provided information lets determine when revenues and expenses are recognized on the accrual method March Revenues 0 No revenue is recognized in March since the project started on March 1 ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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