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stira [4]
3 years ago
11

Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevan

t data are summarized below: Contract amount $ 2,550,000 Cost: 2017 1,100,000 2018 500,000 Gross profit: 2017 650,000 2018 300,000 Contract billings: 2017 1,275,000 2018 1,275,000 ADH recognizes revenue upon completion of the contract. What is the journal entry in 2018 to record revenue?
Business
1 answer:
kipiarov [429]3 years ago
4 0

Answer:

The Journal entry is as follows:

Construction in progress A/c   Dr. $950,000

Cost of construction A/c           Dr. $1,600,000

To revenue from long term contracts                       $2,550,000

(To record the revenue in 2018)

Workings:

Cost of construction:

= cost of 2017 + cost of 2018

= $1,100,000 + $500,000

= $1,600,000

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In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12
IceJOKER [234]

Answer:

The correct answer is:

(1) $15,054

(2) $12,990

Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= Future \ value\times PV \ factor(9 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.09} )^8

= 30000\times 0.5018

= 15,054 ($)

If discounting rate is 11%, the present value will be:

= Future \ value\times PV \ factor(11 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.11} )^6

= 30000\times 0.433

= 12,990 ($)

8 0
3 years ago
If net investment is zero, then Group of answer choices 1. gross investment is greater than depreciation. 2. gross investment eq
Marat540 [252]

Answer:

2. gross investment equals depreciation.

Explanation:

Following Examples is supporting the answer:

Gross investment = $1.3 million.

Depreciation = $1.3 million

Gross Investment = Depreciation

$1.3 million = $1.3 million

Net investment = $1.3 million - $1.3 million = 0 million

Hence proved that Net investment will be zero if gross investment equals depreciation.

4 0
3 years ago
I was doing good until this question
IrinaVladis [17]

i believe it is all but 2

7 0
2 years ago
_____________uses the cloud platform to enable organizations not only to unite around business processes but to gather cloud dat
kupik [55]

Answer:

SaaS ERP

Explanation:

ERP solutions are created to ensure one single source of data truth. With the help of SaaS-based solutions, this function comes to another level by expanding the ERP ecosystem out to mobile devices using modern interfaces that fuel productivity.

4 0
3 years ago
Differential Analysis for a Lease or Buy Decision
il63 [147K]

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

Differential Effects-$15,300

The company should choose BUY EQUIPMENT which is Alternative 2

Explanation:

Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

Costs:

Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

Repair and maintenance (6 years) $0 $13,200.$13,200

($2,200*6=$13,200)

Lease (6 years) $150,000 $0 -$150,000

($25,000*6)

Total costs $150,000 $134,700 -$15,300

Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2

4 0
3 years ago
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