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Fofino [41]
3 years ago
12

Winsor Construction Company uses the percentage-of-completion method of accounting. In 2007, Winsor began work on a contract it

had received which provided for a contract price of $7,500,000. Other details follow: 2007 Costs incurred during the year $3,600,000 Estimated costs to complete as of December 31 2,400,000 Billings during the year 3,300,000 Collections during the year 1,950,000 What should be the gross profit recognized in 2007?
Business
1 answer:
Aleksandr-060686 [28]3 years ago
4 0

Answer:

The gross profit recognized in 2007 is $1,200,000

Explanation:

Use the following formula to the percentage of completion

Percentage of completion =  Total Cost / Contract price

Total cost = Cost incurred to date + Estimated cost to complete = $3,600,000 + $2,400,000 = $6,000,000

Contract price = $7,500,000

Placing values in the formula

Percentage of completion =  $6,000,000 / $7,500,000 = 0..80 = 80%

Use the following formula to calculate the gross profit

Gross profit = Contract price - Total Cost = $7,500,000 - $6,000,000 = $1,500,000

Now calculate the gross profit recognised as follow

Gross profit recognised = Gross profit x Percentage of completion = $1,500,000 x 80% = $1,200,000

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djverab [1.8K]

Answer:

B. Must be written to be enforceable

Explanation:

In the United state, sale of personal property for $500 or more must be written to be enforceable. These kind of contracts are said to be within the statute of fraud.

These types of contracts are called Sales contracts which is an agreement between the buyer and seller. For the amount of money involved, a written contract provides security and peace to the mind of all those involved in the contract, hence why deals above $500 must be written to be enforceable.

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One year ago, you purchased 500 shares of stock for $22 a share. The stock pays $0.32 a share in dividends each year. Today, you
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Answer:

Return on investment=12.81%

Explanation:

<em>Return on investment for a stock comprises of the capitals and dividend earned on the stock.</em>

<em>The capital gain is the difference between he cost of the shares when it was bought and the value when it is sold.</em>

Capital gain = (24.50 -22)× 500= 1250

Dividend earned for a year = 0.32× 500 =160

Total return = 1250  + 160 =1,410

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Return on investment = total return/cost of shares× 100

                                     =1,410 /11,000 ×  100= 12.81

Return on investment=12.81%

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3 years ago
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3 years ago
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SOVA2 [1]

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