1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lions [1.4K]
3 years ago
15

Dixon Construction Company was awarded a contract to construct an interchange at the junction of U.S. 94 and Highway 30 at a tot

al contract price of $11,800,000. The estimated total costs to complete the project were $8,800,000. a. Make the entry to record construction costs of $5,104,000, on construction in process to date. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit b. Make the entry to record progress billings of $2,980,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Creditc. Make the entry to recognize the profit that can be recognized to date, on a percentage-of-completion basis. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit\
Business
1 answer:
Ostrovityanka [42]3 years ago
5 0

Answer:

The Journal entries are as follows:

(i) Construction in progress A/c Dr. $5,104,000

                    To cash A/c                                      $5,104,000

(To record the construction costs)

(ii) Accounts receivables A/c Dr. $2,980,000

              To billings A/c                                    $2,980,000

(To record the progress billings)

(iii) Cost of goods sold A/c Dr. $5,104,000

Construction in progress A/c Dr. $1,740,000

             To revenues A/c                                $6,844,000

(To record the revenues)

Workings:

Revenues :

= (Cost incurred to date ÷ Expected costs to complete) × Contract value

= ($5,104,000 ÷ $8,800,000) × $11,800,000

= 0.58 × $11,800,000

= $6,844,000

You might be interested in
Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks
Colt1911 [192]

Answer:

Net income under absorption costing is $240,000

Explanation:

Sales   (825*$1075)                            $886,875

less variable costs

Variable production cost($375*825)  (309,375)

selling and admin. expense                ($95,000)

Contribution margin                             $482,500

less fixed costs:

fixed production cost                          ($107,500)

selling and admin. expense                ($135,000)

Net income                                           $240,000  

Net income under absorption was $25,000 more than the net income under the absorption costing, the difference is analyzed below:

Fixed product costs (1075-825)*$100=$25,000

That is the fixed production costs added to closing inventory under absorption method which was expensed under variable costing method

     

4 0
3 years ago
When does information become as liability for an organization
UkoKoshka [18]

Answer:

after college hope it help :)

Explanation:

6 0
3 years ago
Read 2 more answers
A study has been conducted to determine if one of the departments in MSU Company should be discontinued. The contribution margin
SOVA2 [1]

Answer:

c. decrease by $10,000 per year.

Explanation:

The contributing margin of a business is sales revenue less the variable cost to produce the product

Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.

In this scenario if the department is discounted the fixed expense will reduce by $40,000

This implies that the net income will increase by $40,000 if the department is discontinued.

If the department is discontinued income from the department will reduce by $50,000. That is -$50,000

Net income= -50,000 + 40,000= -$10,000

4 0
3 years ago
Which of the following provisions of the Sarbanes-Oxley Act addresses the management assessment of internal controls?
Ainat [17]

Answer:

b. codes of ethics for senior financial officers.

Explanation:

according to the Sarbanes-Oxley act:

- The company should be having an expert who is responsible for the auditing andd the company should name the expert and if they are not having the expert they should give a reason.

- A comapny should have a code andd ethics and it should also be applied to the seniors.

4 0
3 years ago
A company is using a mobile device deployment model in which employees use their personal devices for work at their own discreti
Elis [28]

Answer:

no entiendo un carajoooooool

8 0
3 years ago
Other questions:
  • True or false: if you buy enough different stocks, you can diversify out all risk in the stock market.
    12·1 answer
  • Assume that the company expects sales of each product to decline to 25,000 units next year with no change in unit selling price.
    11·1 answer
  • Blue Ridge Bank has a PM of 12 percent, an interest income to total assets ratio of 6.00 percent, and a noninterest income to as
    6·1 answer
  • When projecting future cash flows of an investment​ ________. A. the initial investment is a significant cash outflow that is tr
    13·1 answer
  • Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice a
    10·1 answer
  • Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purc
    11·1 answer
  • Drag each example to the corresponding step in the new-product development process.
    10·1 answer
  • On December 1, 2021, Coronado Industries exchanged 48000 shares of its $10 par value common stock held in treasury for a used ma
    6·1 answer
  • Any business ideas u guys want to do in the future?
    13·2 answers
  • NewTel is a telephone company with a policy of filling positions through promotions rather than hiring from outside. Until recen
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!