Johann Builders has a fixed-price contract providing $120,000 of revenue. Constr
ID: 2559999 • Letter: J
Question
Johann Builders has a fixed-price contract providing $120,000 of revenue. Construction on the contract was begun in 2013 and was completed in 2014. Information relating to the contract is as follows: 19. 2013 2014 S 40,000 S 105,000 Cumulative cost incurred to the end of the year Expected costs to complete Billings to the end of the year Collections to the end of the year 60,000 120,000 8,000 46,000 120,000 What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition? a. $7,000 b. $9,286 e. $17,000 d. $15,000 20 An analysis and aging of accounts receivable of the Gibson Company at December 31, 2014, showed the following: Allowance for Doubt ful Accounts (before adjustment) 36,000 (cr) 76,800 Compute the et realizable valuc of the accounts receivable of Gibson Company at December 31,2014, a $7232 $804,000 $799,200 $727.200Explanation / Answer
19. Johann Builders has a fixed -price contract providing $120,000 of revenue. Construction on the con- tract was begun in 2013 and was completed in 2014.
Expected costs to complete 60,000 - Billings to the end of the year 38,000 120,000 Collections to the end of the year 46,000 120,000
20. An analysis and aging of accounts receivable of the Gibson Company at December 31, 2014, showed the following:
19. Johann Builders has a fixed -price contract providing $120,000 of revenue. Construction on the con- tract was begun in 2013 and was completed in 2014.
nformation relating to the contract is as follows: Cumulative cost incurred to the end of the year $ 40,000 $ 105,000Expected costs to complete 60,000 - Billings to the end of the year 38,000 120,000 Collections to the end of the year 46,000 120,000
What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition? 19. Ans: a. $7,00020. An analysis and aging of accounts receivable of the Gibson Company at December 31, 2014, showed the following:
Accounts Receivable . ................................. $800,000 Allowance for Doubtful Accounts (before adjustment) . ............................... 36,000 (cr) Accounts estimated to be uncollectible . .............. 76,800 Compute the net realizable value of the accounts receivable of Gibson Company at December 31, 2014. 20. Ans: a. $723,200Related Questions
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