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
const2013 [10]
3 years ago
7

As of December 31, 2021, Cady Construction has one construction job for which the construction in prog-ress (CIP) account has a

balance of $20,000 and the billings on construction contract account has a balance of $14,000. Cady has another construction job for which the construction in progress account has a balance of $3,000 and the billings on construction contract account has a balance of $5,000. Indicate the amount of contract asset and/or contract liability that Cady would show in its December 31, 2021, balance
Business
1 answer:
Ierofanga [76]3 years ago
4 0

Answer:

According to "AS 7 - Construction Contracts",Gross amounts receivable / payable from / by customers should be recognized as contract asset / liability in the balance sheet.

For the first job, construction work in progress is greater than the bills raised. Hence there exists contract asset.

Contract asset = Cost incurred - Billing done

= $20,000 - $14,000

= $6,000

For the second job, construction in progress is less than the bills raised. Hence there exists contract liability.

Contract liability = Bills raised - Cost incurred

= $5,000 - $3,000

= $2,000

Hence, Contract asset = $6000 , Contract Liability = $2000

You might be interested in
Which of the following includes ideas, innovation, and risk-taking?. . Capital. . Entrepreneurship. . Labor. . Land
Anna [14]
Entrepreneurship

People as entrepreneurs, has the capacity to decide, to innovate and to generate ideas, for the business he/she manages.
6 0
3 years ago
Exercise 4-15A Calculate net cash flows (LO4-7) Below are several transactions for Meyers Corporation for 2021. Issue common sto
Sphinxa [80]

Answer:

Meyers Corporation

Determining the amount of cash flows:

a. $60,000

b. -$45,000

c. -$1,500

d. $6,000

e. -$10,000

f. -$5,000

Classification as operating, investing, or financing activities:

a. Financing

b. Investing

c. Operating

d. Operating

e. Operating

f. Financing

Explanation:

Meyers Corporation prepares the statement of cash flows which classifies its financial activities into three main sections: operating activities, investing activities, and financing activities sections in order to present the statement in clear and understandable formats.  This statement is one of the main financial statements that report the corporation's financial position and performance at the end of an accounting period.

8 0
3 years ago
The Chinese political environment is very:
VikaD [51]

Answer:

Strict about it's people and not a lot of people own cars. I thinks that's China or that's North Korea. In not sure

3 0
3 years ago
The journal entry for the purchase of inventory on account using the perpetual inventory system is:.
Solnce55 [7]

The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.

<h3>What is a journal entry?</h3>

It should be noted that a journal entry is used to record the financial activities of a company.

In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
Ainat [17]

Answer:

False

Explanation:

An excise tax is tax levied on some specific goods. It is an indirect tax because it is not levied on customers.

Excise tax would increase the cost of supplying alcohol. This would reduce the supply of tax. A decrease in the supply of tax would increase the price of alcohol

4 0
3 years ago
Other questions:
  • Brad is a transportation coordinator for volkswagen of north america. in order to move a large order of vehicles from a plant in
    7·1 answer
  • Cantrell company is required by law to collect and remit sales taxes to the state. if cantrell has $8,000 of cash sales that are
    13·2 answers
  • On Jan 1,2016, the Allegheny corporation purchased machinery for115,000$. The estimated service life of the machinery is 10 year
    5·1 answer
  • _____ involves interpreting the meaning of the received messages
    7·1 answer
  • Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plau
    5·1 answer
  • During industrialization, smaller businesses struggled to compete with large corporations because small businesses
    5·1 answer
  • Boyce Manufacturing Co.'s operates 3 profit centers. The clothing center’s static budget at 6,000 units of production includes $
    7·2 answers
  • During her speech on malpractice insurance, the head of the local branch of the American Medical Association consistently avoide
    12·1 answer
  • Remote Disposal Company operates a hazardous waste storagefacility. Concerned that there may be a release of chemicals from thes
    13·1 answer
  • Pancakes and waffles are:
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!