Question: During 2023, Cherry Corp. started a construction job with a total contract price of $1,050,000. Cherry has used zero-profit method. The job was completed on

During 2023, Cherry Corp. started a construction job with a total

During 2023, Cherry Corp. started a construction job with a total contract price of $1,050,000. Cherry has used zero-profit method. The job was completed on December 15, 2024. Additional data are as follows: For 2023, what amount should Cherry recognize as gross profit? a. $120,000 b. $187,500 c. $120,000 d. $0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

During 2 0 2 3 , Cherry Corp. started a construction job with a total contract price of $ 1 , 0 5 0 , 0 0 0 . Cherry has used zero - profit method. The job was completed on December 1 5 , 2 0 2 4 ....

Q:

During 2023, Grouper Corp. started a construction job with a total contract price of $1067000. Grouper has consistently used the completed-contract method. The job was completed on December 15, 2024....

Q:

During 2023, Bridgeport Corp. started a construction job with a total contract price of $1051000. Bridgeport has consistently used the completed-contract method. The job was completed on December 15,...

Q:

During 2023, Sarasota Corp. started a construction job with a total contract price of $1072000. Sarasota has consistently used the completed-contract method. The job was completed on December 15,...

Q:

During 2023, Marigold Corp. started a construction job with a total contract price of $1072000. Marigold has consistently used the completed-contract method. The job was completed on December 15,...

Q:

1)The concept of commercial substance in purchase and sales transactions means that the entity's cash flows are expected to change. the transaction is a bona fide purchase and sale, and the entity's...

Q:

During 2020, Bing Corp. started a construction job with a total contract price of $1,050,000. Bing has consistently used the completed contract method. The job was completed on December 15, 2021....

Q:

During 2020, Bing Corp. started a construction job with a total contract price of $1,050,000. Bing has consistently used the completed contract method. The job was completed on December 15, 2021....

Q:

During 2020, Bing Corp. started a construction job with a total contract price of $1,050,000. Bing has consistently used the completed contract method. The job was completed on December 15, 2021....

Q:

During 2020, Bing Corp. started a construction job with a total contract price of $1,050,000. Bing has consistently used the completed contract method. The job was completed on December 15, 2021....

Q:

List the main characteristics of the financial instruments available for managing interest rate risk and exchange rate risk

Q:

Franklin, Inc. had the following shareholders equity on November 30: Shareholders Equity Share Capital: Common Shares, unlimited number of shares authorized, 50,000 shares issued and 45,000 shares...

Q:

Anaylsis: Upon completing the "status quo" budget, find ways to trim, consolidate, or increase income to improve the Davidson's budget. Make sure to consider ways to increase the family savings as...

Q:

Consider the media you use most often in the workplace. In what ways can your organization benefit from using different types of media

Q:

OUTCOME 4 Discuss recent trends in retirement policies and programs and the major factors involved in managing pension plans.

Q:

OUTCOME 1 Explain the different regimes that govern the employment relationship and the rules that apply to employment contracts.

Q:

2. Learn about the safety programs at your institution. In what ways do you think they might be similar to safety programs in the workplace? In what ways might they be different?