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Law Incorporation [45]
3 years ago
9

Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,00

0 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on progress billings $800,000 The project is accounted for by the percentage of completion method of accounting. In Barr's 20X0 income statement, what amount of gross profit should be reported for this project?
Business
1 answer:
dalvyx [7]3 years ago
4 0

Answer:

The correct answer is $350,000

Explanation:

Contract price = $4,200,000

Costs incurred  = $1,750,000

Estimated costs to complete = $1,750,000

Progress billings= $900,000

Collections on progress billings= $800,000

<u>Contract price - total estimated cost</u>

<u />

$4,200,000 - ($1,750,000 + $1,750,000)

= $4,200,000 - $3,500,000

= $700,000

<u>one-half of the estimated costs of this construction project were incurred</u>

$1,750,000 ÷ ($1,750,000 + $1,750,000)

= $1,750,000 ÷ $3,500,000

= 0.5

In Barr's 20X0 income statement,what amount of gross profit should be reported for this project?

$700,000 x 0.5 = $350,000

$350,000 should be reported as gross profit for the 20X0 income statement.

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Answer:

A subcontractor is a company or person who is hired by a general contractor (or prime contractor, or main contractor) to perform a specific task as part of the overall project and is normally paid for services provided to the project by the originating general contractor.

Hope it helps!!! Please give brainliest!!!

4 0
3 years ago
1. What kind of financial information is a publicly traded company required to provide to its stockholders? Which financial stat
qwelly [4]

Answer:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Cash flow for Crooked Golf is $30,000

Explanation:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Csh flow for Crooked Golf is $30,000.

Calculated as follow,

$90,000 - $60,000

Depreciation is non Cash flow.

4 0
2 years ago
To determine the six-month interest payment amount on a bond, you would take one-half of the market rate times the face value of
MrRa [10]

Answer:

False

Explanation:

To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.

The market rate of the bond may or may not be equal to the contract rate. If the bond was sold at a premium, the market rate is lower than the contract rate. If the bond is sold at a discount, the market rate will be higher than the contract rate.

3 0
3 years ago
Kent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The D
Burka [1]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

As per §117(b)(2) a qualified scholarship that is solely used for qualified tuition and related expenses like fees, books and supplies that is necessary for such course in which admission is taken, related tuition fees and associated expenses are not taxable.

On the other side expenses on rooms and boarding are not qualified expenses so any amount spent on it is fully taxable. Another condition is that scholarship given should not be an exchange of service.

<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  </em>

<em />

<em />

Download xlsx
6 0
3 years ago
Check my workCheck My Work button is now enabledItem 15 Time Remaining 2 hours 27 minutes 1 second02:27:01 Exercise 8-16 Direct
Step2247 [10]

Answer:

Zan Corporation

Production Department

Quarters                                1st            2nd           3rd          4th       Total

1. Raw materials              50,000g   62,000g  54,000g  44,000g 210,000g

  Purchased

2. Cost of purchases    $60,000   $74,400  $64,800  $52,800 $252,000

3. Total disbursement   $38,880  $68,640  $68,640   $57,520  $233,680

4. Direct labor costs      $11,500    $18,400    $16,100   $13,800    $59,800

Explanation:

a) Data and Calculations:

Forecast Production

Quarters                               1st            2nd           3rd            4th       Total

Units to be produced        5,000        8,000       7,000       6,000     26,000

Grams required               40,000g   64,000g  56,000g   48,000g 208,000

Beginning Inventory          6,000g    16,000g   14,000g    12,000g   6,000g

Raw materials purchase 50,000g   62,000g  54,000g   44,000g 210,000g

Ending Inventory             19,200g     16,800g   14,400g      9,600g

Cost of purchases        $60,000   $74,400  $64,800   $52,800  $252,000

Beginning Inventory cost  7,200     19,200      16,800      14,400

Total Cost of materials $67,200  $93,600   $81,600   $67,200

Cost of materials used $48,000  $76,800  $67,200   $57,600

Grams required by 1 unit        8 gm

Cost of 1 gm = $1.20

Ending Raw materials

25% of next quarter's  16,000gm    14,000gm  12,000gm  8,000gm

Accounts Payable

Beginning balance         $2,880

Cost of purchases       $60,000   $74,400  $64,800   $52,800  $252,000

Cash Disbursement for purchases of materials:

Cash Payment:                  1st            2nd           3rd            4th       Total

60% quarter acquired  36,000      44,640     38,880      31,600

40% in ffg quarter          2,880      24,000     29,760     25,920

Total disbursement   $38,880    $68,640  $68,640   $57,520  $233,680

Cost of direct labor:

Each unit requires 0.20 direct labor-hours at $11.50 per hour

Quarters                               1st            2nd           3rd            4th       Total

Units to be produced       5,000        8,000       7,000       6,000     26,000

Total direct labor-hours    1,000         1,600        1,400       1,200        5,200

Direct labor costs          $11,500     $18,400    $16,100   $13,800   $59,800

7 0
3 years ago
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