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Alecsey [184]
3 years ago
9

Kline Corp. recognizes revenue over time to account for long-term contracts. The contract price is $5 million, total constructio

n costs are $3.75 million, actual costs incurred during the first year are $1.5 million, and the revenue recognized is $2 million. The journal entry to record revenue during year 1 is: (Select all that apply.)
a. Debit: CIP $500,000
b. Credit: Revenue $2 million
c. Debit: Cost of construction $1.5 million
Business
1 answer:
timurjin [86]3 years ago
7 0

Explanation:

The journal entry is shown below:

Contract price Dr $500,000

Cost of construction $1.5 million

        To Revenue $2 million

(Being the revenue for the year 1 is recorded)

For recording this transaction we debited the contract price and cont of construction while credited the revenues account so that the proper posting could be done

             

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On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $673,618.61. The bonds carry a stated rat
Evgen [1.6K]

Answer:

Nov 1 2018

Dr Bonds receivable 700,000

Cr Cash 67,3618.61

Cr Discount on bonds receivable 26,381.39

April 3 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

Dr Interest revenue 37,059.02

Oct 31, 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

Cr Interest revenue 37,059.02

Nov 1, 2019

Dr Cash 700,000

Dr Discount on bonds receivable 22,283.25

Cr Notes receivable 700,000

Cr Profit on sale bonds receivable 22,283.25

Explanation:

Preparation of the journal entries to record the following:

Purchase of the bonds

Interest receipts on April 30, 2019 and October 31, 2019

Sale of the bonds.

Journal entries

Nov 1 2018

Dr Bonds receivable 700,000

Cr Cash 67,3618.61

Cr Discount on bonds receivable 26,381.39

(700,000-67,3618.61)

(To record Purchase of bonds)

April 30 2019

Dr Cash 35,000

(700,000*10%*6/12)

Dr Discount on bonds receivable 2,049.02

(37,059.02-35,000)

Dr Interest revenue 37,059.02

(673,618.61*11%*6/12)

(To record Interest receipts)

Oct 31, 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

(37,059.02-35,000)

Cr Interest revenue 37,059.02

(673,618.61*11%*6/12)

(To record Interest receipts)

Nov 1, 2019

Dr Cash 700,000

Dr Discount on bonds receivable 22,283.25

($26,381.39-$2,049.02-$2,049.02)

Cr Notes receivable 700,000

Cr Profit on sale bonds receivable 22,283.25

(To record Sale of the bonds)

8 0
3 years ago
HELPPP
Kamila [148]

Answer:

ture

Explanation:

5 0
2 years ago
Read 2 more answers
Precision Camera Services started the year with total assets of​ $120,000 and total liabilities of​ $40,000. The company is a so
eimsori [14]

Answer:

$125,000

Explanation:

Opening values of;

Total assets =​ $120,000

Total liabilities = $40,000

Total equity = $120,000 - $40,000 = $80,000

During the year,

Total revenues = $140,000

Total expenses = $50,000

Withdrawal by owner = $45,000

The amount withdrawn by the owner reduces the owners equity. This may be deducted from the net income.

Net income from the year = $140,000 - $50,000 - $45,000

                                           = $45,000

This will be added to the opening owner's equity to get the closing owner's equity.

Owner's equity at the end of the​ year = $80,000 + $45,000  

                                                               = $125,000

3 0
3 years ago
If Central Bank A cares only about keeping the price level stable and Central Bank B cares only about keeping output at its natu
dexar [7]

<u>A)</u><u> Both Central Bank A and Central Bank B should </u><u>increase</u><u> the </u><u>quantity</u><u> of </u><u>money.</u>

<u></u>

<h3><u>What is the Central Bank?</u></h3>

A financial institution with exclusive authority over the creation and distribution of money and credit for a country or a group of countries is known as the central bank. In contemporary economies, the central bank is typically in charge of monetary policy formulation and member bank regulation. Inherently non-market-based or even anti-competitive institutions are central banks. Many central banks, despite the fact that some have been nationalized, are not part of the government and are therefore frequently hailed as being politically independent. However, even though a central bank isn't technically the government's property, its rights are still created and safeguarded by the law.

Learn more about central banks with the help of the given link:

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8 0
2 years ago
A company uses the departmental overhead rate method. Total overhead costs are $5,000,000. Of this total, the machining departme
AleksAgata [21]

Answer:

Allocation rate Machining= $50 per machine hour

Explanation:

Giving the following information:

Estimated Machining cost= $4,000,000

Estimated Number of machine hours= 80,000

<u>To calculate the allocation rate for the Machining department, we need to use the following formula:</u>

Allocation rate Machining= total estimated costs for the period/ total amount of allocation base

Allocation rate Machining= 4,000,000 / 80,000

Allocation rate Machining= $50 per machine hour

4 0
3 years ago
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