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
dexar [7]
3 years ago
11

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. T

he road was completed in 2023. Information related to the contract is as follows:
2021 2022 2023
Cost incurred during the year $2,640,000 $2,300,000 $2,926,000
Estimated costs to complete as of year-end 6,160,000 2,660,000 0
Billings during the year 2,080,000 2,860,000 5,060,000
Cash collections during the year 1,840,000 2,800,000 5,360,000

Westgate recognizes revenue over time according to percentage of completion.

Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized In each of the three years.
2.b. In the Journal below, complete the necessary Journal entries for the year 2021.
2.c. In the Journal below, complete the necessary Journal entries for the year 2021.
3. Complete the Information required below to prepare a partial balance sheet for 2020 and 2021 showing any Items related to the contract.
4. Calculate the amount of revenue and gross profit (loss).
Business
1 answer:
strojnjashka [21]3 years ago
5 0

Answer:

I think no A

if wrong correct me plsssssss

You might be interested in
During 2018, Deluxe Leather Goods issued 841,000 coupons which entitles the customer to a $4.20 cash refund when the coupon is s
sergeinik [125]

Answer:

$978,306

Explanation:

The computation of the unremembered liability coupons is shown below:

= (Number of coupons issued × redeemed coupon percentage) - (processed coupons) × worth of coupon

= (841,000 coupons × 73%) - (381,000 coupons) × $4.20

= (613,930 coupons - 381,000 coupons) × $4.20

= 232,930 coupons × $4.20

= $978,306

We simply deduct the processed coupons from the redeemed coupons and then multiply it by the coupon worth

8 0
3 years ago
Gilberto Company currently manufactures 90,000 units per year of one of its crucial parts. Variable costs are $3.20 per unit, fi
Elina [12.6K]

Answer:

Part 1

total incremental cost of making 90,000 units =  $388,000

total incremental cost of buying 90,000 units = $396,000

Part 2

There is a cost advantage of $8,000 of making than buying, therefore  the company should continue to manufacture the part.

Explanation:

total incremental cost of making 90,000 units

Variable costs are ($3.20 x 90,000 units)    $288,000

Fixed Costs                                                      $100,000

Total                                                                 $388,000

total incremental cost of buying 90,000 units

Purchase Price ($4.40 x 90,000 units)          $396,000

Total                                                                 $396,000

Decision :

There is a cost advantage of $8,000 of making than buying, therefore  the company should continue to manufacture the part.

6 0
2 years ago
g Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each
Tanya [424]

Answer:

B. a debit to Interest Expense for $ 42 comma 750.

C. a credit to Cash of $ 137 comma 750.

Explanation:

Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.

As per given data

Principal Payment = $95,000

First Interest payment = $475,000 x 9% = $42,750

Total Payment = $95,000 + $42,750 = $137,750

Journal Entry for first payment

Dr. Interest Expense $42,750

Dr. Not Payable         $95,000

Cr. Cash                     $137,750

6 0
3 years ago
on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.
Kitty [74]

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

  • Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
  • After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
  • Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
  • Typically, these investments are high-quality and highly liquid assets or investment vehicles.
  • Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

To know more about Short-term investment visit:

6 0
2 years ago
Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I
Rasek [7]

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

PV of Cash Flows :

($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)

$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

$715.52 + $854.64 + $903.33 + $856.05

$3,329.54.

7 0
3 years ago
Other questions:
  • If purchasing power parity holds, a bushel of rice costs $10 in the US, and the nominal exchange rate is 2 Thai bhat per dollar,
    12·1 answer
  • company has bonds outstanding with a par value of $110,000. The unamortized premium on these bonds is $2,585. If the company ret
    10·1 answer
  • If people expect the price of packaged coffee to rise next week, coffee demand will:
    15·1 answer
  • Treasury bills are currently paying 4.7 percent and the inflation rate is 2.2 percent. a. What is the approximate real rate of i
    11·1 answer
  • 31. The unpaid portion of a loan is called
    13·1 answer
  • Sterling Auto International (Scenario) Sterling Auto International is a successful car manufacturing company headquartered in De
    5·1 answer
  • On a balance sheet, a. total assets must equal total liabilities plus equity. b. total assets plus equity must equal total liabi
    10·1 answer
  • Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other s
    14·1 answer
  • Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is
    6·1 answer
  • __ strategy customizes the product offering to local demands and increases the value of that product in the local market. A tran
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!