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Juliette [100K]
3 years ago
10

On February 1, 2020, Marsh Contractors agreed to construct a building at a contract price of $17,400,000. Marsh estimated total

construction costs would be $12,000,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $4,500,000 $7,920,000 $13,800,000 Estimated costs to complete 7,500,000 5,280,000 -0- Customer billings to date 6,600,000 12,000,000 16,800,000 Collections to date 6,000,000 10,500,000 16,500,000 Required: For percentage-of-completion accounting and for completed-contract accounting, compute the gross profit that should be recorded for 2020, 2021, and 2022. Be sure to show your computations in the answer box and to fill in the correct amounts on a schedule similar to the one below. It is important that you show not only your answers but also your computations!
Business
1 answer:
sammy [17]3 years ago
8 0

Answer:

Check the explanation

Explanation:

Contract price = 17,400,000

Gross profit under percentage of completion method =

[(costs incurred to date / estimated total costs) * estimated profit] - previously recognized profit

Gross profit in 2017 =

[4,500,000 / 12,000,000(4,500,000 + 7,500,000) * 5,400,000(17,400,000 - 12,000,000)] = 2,025,000

Gross profit in 2018 =

[7,920,000 / 13,200,000(7,920,000 + 5,280,000) * 4,200,000(17,400,000 - 13,200,000)] - 2,025,0000 = 495,000

Gross profit in 2019 =

[13,800,000 / 13,800,000 * 3,600,000] - 2,025,000 - 495,000 = 1,080,000

Under the completed contract method Gross profit is recognized only in the year of completion.

Gross profit in 2017 = 0

Gross profit in 2018 = 0

Gross profit in 2019 = 17,400,000 - 13,800,000 = 3,600,000

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Maria, a citizen and resident of Mexico, received the following investment income during 2018: $1,000 of dividend income from ow
dmitriy555 [2]

Answer: $6,000

Explanation:

Maria is a citizen and resident of Mexico so the only way the U.S. can tax Maria is by taxing income that is in U.S. jurisdiction before it comes to Maria.

This will include the dividend from ownership of stock in a U.S. Corporation, the interest from a U.S. company issued bond and rental income from a property located in the U.S.

The U.S. will be unable to tax the capital gain from sale of stock however because the sale might not be conducted in the U.S.

Income subject to U.S. taxation is therefore:

= 1,000 + 2,000 + 3,000

= $6,000

8 0
3 years ago
A process of determining just how much value an​ organization's marketing activities create and their impact on the bottom line
3241004551 [841]

Answer:

B, corporate citizenship

Explanation:

Corporate citizenship also know as corporate social responsibility is defined as the contribution or impact or effect of a company's/organization's/firm's business has on its local community or the society as whole. This involves the company/firm investing in its community as a form of giving back to the community asides from the company's business interests.

Cheers.

6 0
3 years ago
Which savings account will earn the most interest?
mestny [16]

Answer:

it would be 10,000 for 4.00% interest for 4 years.

Explanation:

the reason is the amount would turn out at 10,824 dollars and you earned 824 dollars in income.

3 0
3 years ago
The balance in the unearned fees account, before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have be
Sloan [31]

Answer:

(a) Debit Unearned fees account  $775,000

    Credit Fees revenue account    $775,000

(b)  Debit Unbilled receivables   $289,500

     Credit Fees revenue account    $289,500

Explanation:

When fees are received in advance but yet to be earned, a debit is posted to cash account and a credit to unearned fees. When revenue is earned, credit revenue and debit unearned fees.

As such, given that before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have been earned. Adjusting entries required

Debit Unearned fees account  $775,000

Credit Fees revenue account    $775,000

Being entries to record revenue earned.

Also given that $289,500 of fees have been earned but not billed to clients, entries required are

Debit Unbilled receivables   $289,500

Credit Fees revenue account    $289,500

Being entries to accrue for revenue earned but yet to be billed.

6 0
3 years ago
You currently drive 250 miles per week in a car that gets 24 miles per gallon of gas. You are considering buying a new​ fuel-eff
olga_2 [115]

Answer:

It is less expensive to keep your old car.

Explanation:

We have been given that you currently drive 250 miles per week in a car that gets 24 miles per gallon of gas.  

1 year equals 52 weeks.

5 years equals 260 weeks.

\text{Number of miles traveled in 5 years}=260\times 250

\text{Number of miles traveled in 5 years}=65,000

The old car gives a mileage of 24 miles per gallon of gas.

\text{Gallons of gas used by old car}=\frac{65,000}{24}

\text{Gallons of gas used by old car}=2708.33

\text{Cost of gas used by old car}=2708.33\times \$3.50

\text{Cost of gas used by old car}=\$9479.155

\text{Insurance premium for old car for 5 years}=\$400\times 5

\text{Insurance premium for old car for 5 years}=\$2,000

\text{Amount spent on repairs for old car}=\$1500\times 5

\text{Amount spent on repairs for old car}=\$7500

\text{Total cost of using old car for 5 years}=\$7500+\$9479.155+\$2,000

\text{Total cost of using old car for 5 years}=\$18979.155

Therefore, the total of using old car for 5 years is $18979.16.

We are told that new car gives a mileage of 53 miles per gallon.

\text{Gallons of gas used by new car}=\frac{65,000}{53}

\text{Gallons of gas used by new car}=1226.415

\text{Cost of gas used by new car}=\$3.50\times 1226.415

\text{Cost of gas used by new car}=\$4292.45

\text{Insurance premium for new car for 5 years}=\$800\times 5

\text{Insurance premium for new car for 5 years}=\$4,000

\text{Total cost of using new car for 5 years}=\$14,000+\$4292.45+\$4000

\text{Total cost of using new car for 5 years}=\$22292.45

Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.

7 0
3 years ago
Read 2 more answers
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