For a construction firm using the completed-contract method, if costs exceed billings on some contracts by...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For a construction firm using the completed-contract method, if costs exceed billings on some contracts by $1,000,000 and billings exceed costs by $800,000 on others, the contracts should ordinarily be reported as a current asset of S200,000. b. current liability of $200,000. current asset of S1,000,000 less a contra-current asset of $800,000. d. current asset of S1,000,000 and a current liability of $800,000. a. с. For a construction firm using the completed-contract method, if costs exceed billings on some contracts by $1,000,000 and billings exceed costs by $800,000 on others, the contracts should ordinarily be reported as a current asset of S200,000. b. current liability of $200,000. current asset of S1,000,000 less a contra-current asset of $800,000. d. current asset of S1,000,000 and a current liability of $800,000. a. с.
Expert Answer:
Answer rating: 100% (QA)
The correct answer is d current asset of 1000000 and a current liability of 800... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
At the beginning of 2017, Metlock Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The...
-
A runner is moving at 8 m s1 away from a crying baby. If the sound he hears has a frequency of 3370 Hz, what was the emitted frequency of the crying? Sound waves move at 330 m s. Give your answer to...
-
If a company has numerous long-term construction contracts for which it cannot reliably estimate the costs to complete, would it recognize more or less revenue under IFRS relative to U.S. GAAP? Why?
-
Consider the example in Exhibit 5.5. Can you think of anything else you might do with that example that would be helpful to the ultimate decisionmaker? exhibit 5.5 Decision Tree Analysis Using Net...
-
Should Odegard consider forming a partnership with her factory owners? If so, what different types of laws might apply to an international venture such as this one? How might the risks and rewards of...
-
Louis Vitton CEO Yves Carcelle says, "One to two thousand people is all you need. You can't judge by average income-average doesn't mean anything." Although he was speaking about the luxury goods...
-
The tapered cantilever beam shown in Fig. 12.15 is used as a spring to carry a load \(P\). Derive the stiffness matrix of the beam using a one-element idealization. Assume \(B=25 \mathrm{~cm}\),...
-
Rosas Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the week....
-
This issue was from June of 2022 it involved FMLA for an employee of the Cook county Sheriffs office who was a correctional officer for them. The officer had been working at the Cook county office...
-
A probability plot of 66 yr of peak discharges for the Kentucky River near Salvisa, Kentucky, is shown in Fig. P3-19 (a) What probability distribution is being used? (b) What are the mean and...
-
what is social development resource are applies in human and how to you can describe the answers in social working
-
How is a volatility surface used in option pricing?
-
What is a minimum variance delta?
-
What is the difference between the volatility smiles that are typically observed for equities and currencies?
-
Eddie's Precision Machine Shop is insured for \(\$ 700,000\). The present yearly insurance premium is \(\$ 1.00\) per \(\$ 100\) of coverage. A sprinkler system with an estimated life of 20 years and...
-
We want to compute the linear convolution of a long sequence \(x(n)\), of length \(L\), with a short sequence \(h(n)\), of length \(K\). If we use the overlap-and-save method to compute the...
-
How will an increase in estimated short-term funding compared to long-term funding likely affect the rates of long-term bonds? How will our allocation of funding needs in short-term and long-term...
-
Explain why each of the following is either a private good or a public good: traffic lights, in line skates, a city park, a chicken salad sandwich, a tennis racket, national defense, a coastal...
-
Lime Corporation participated in a simultaneous investing and financing transaction where it acquired a building costing $50,000 by issuing common stock. Show how Lime Corporation would report this...
-
United Manufacturing Company manufactures and leases computers to its customers. During 2010, the following lease transactions take place: 1. On January 1, a computer is leased to Superior...
-
Cole Company had a deferred tax liability of $1,000 at the end of Year 1 when the tax rate was 20%. In Year 2, Congress increases the income tax rate from 20% to 30%. Record the journal entry Cole...
-
The property of a system depends upon its state. State True (T) or False (F)
-
In a control volume, mass, momentum and energy may flow. State True (T) or False (F)
-
Temperature is an intensive property. State True (T) or False (F)
Study smarter with the SolutionInn App