Question
In: Accounting
On January 1, 2017, Spartan Company signed a $240 million contract with the City of Amherst...
-
On January 1, 2017, Spartan Company signed a $240 million contract with the City of Amherst to construct a new city hall. Spartan expects to construct the building within two years and incur total expenses of $180 million. Spartan incurred $72 million in construction costs during 2017 and the remaining $108 million in 2018. Using the percentage-of-completion method, how much revenue should Spartan recognize in 2017?
Solutions
Expert Solution
- Total cost = $ 180 millions
- Cost incurred in 2017 = $ 72 millions
- Percentage completed in 2017 = $72 million / 180 millions = 40%
- Answer:
Revenue to be recognised in the year 2017 = $ 240 million contract revenue x 40% = $ 96 millions - Final Answer value = $ 96 millions or $ 96,000,000
ekkarill92 answered 2 years agoRelated Solutions
On January 1 of year 1, Falk Company signed a contract to lease space in a...
On January 1 of year 1, Falk Company signed a contract to lease
space in a building for 3 years. The lease contract calls for
annual (prepaid) rental payments of $141,000 on each January 1
throughout the life of the lease and for the lessee to pay for all
additions and improvements to the leased property. Present value of
the three lease payments is $392,400.
Required:
1. Assume the lease is accounted for as a
finance lease. Prepare entries for...
On January 1, 2020, the company signed on a lease contract which qualifies as finance lease....
On January 1, 2020, the company signed on a lease contract which
qualifies as finance lease. It calls for annual payments of $52,538
at 1/1/2020 for the first payments, and 12/31 of each year
thereafter over a six-year lease term. The present value of total
lease payment is $280,000 under 5% annual interest rate. Make
journal entries for each of following dates, including any interest
or amortization expenses.
January 1, 2020, signs the lease contract and makes the first
payment...
On January 12, 2009, Capsule Corp. signed a $4 million contract to construct an office and...
On January 12, 2009, Capsule Corp. signed a $4 million contract
to construct an office and warehouse for a small wholesale company.
The project was originally expected to be completed in two years,
but difficulties in hiring a sufficient pool of skilled workers
extended the completion date by an extra year. As well, significant
increases in the price of steel in the second year resulted in cost
overruns on the project. Capsule Corp. was able to negotiate a
partial recovery...
On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an...
On January 1, 2017, Loud Company enters into a 2-year contract
with a customer for an unlimited talk and 5 GB data wireless plan
for $65 per month. The contract includes a smartphone for which the
customer pays $299. Loud also sells the smartphone and monthly
service plan separately, charging $649 for the smartphone and $65
for the monthly service for the unlimited talk and 5 GB data
wireless plan. On July 1, 2017, the customer realizes that she
needs...
On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an...
On January 1, 2017, Loud Company enters into a 2-year contract
with a customer for an unlimited talk and 5 GB data wireless plan
for $65 per month. The contract includes a smartphone for which the
customer pays $299. Loud also sells the smartphone and monthly
service plan separately, charging $649 for the smartphone and $65
for the monthly service for the unlimited talk and 5 GB data
wireless plan.
Required:
1.
Calculate the transaction price for the smartphone and...
On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an...
On January 1, 2017, Loud Company enters into a 2-year contract
with a customer for an unlimited talk and 5 GB data wireless plan
for $65 per month. The contract includes a smartphone for which the
customer pays $299. Loud also sells the smartphone and monthly
service plan separately, charging $649 for the smartphone and $65
for the monthly service for the unlimited talk and 5 GB data
wireless plan.
Required:
1.
Calculate the transaction price
for the smartphone and...
Brick Ltd is a building construction company. On 1July 2017, Brick Ltd signed a contract with...
Brick Ltd is a building construction company. On 1July 2017,
Brick Ltd signed a contract with Pear Ltd to build a factory. The
contract price was $ 12,000,000. The relevant information is as
follows:
Financial year ending 30 June:
Construction costs for year
Billings and payments for year
2018
$ 3,500,000
$ 3,000,000
2019
$ 5,000,000
$ 5,000,000
2020
$ 1,500,000
$ 4,000,000
Pear Ltd will be in control of the asset throughout the
construction process. The contract is completed...
In 2018, a football player signed a contract reported to be worth $75.3 million. The contract...
In 2018, a football player signed a contract reported to be
worth $75.3 million. The contract was to be paid as $10.7 million
in 2018, $11.7 million in 2019, $13.1 million in 2020, $13.2
million in 2021, $13.2 million in 2022, and $13.4 million in 2023.
If the appropriate interest rate is 8 percent, what kind of deal
did the player snag? Assume all payments are paid at the end of the
year. (Do not round intermediate calculations and enter...
In 2015, a baseball player signed a contract reported to be worth $98.5 million. The contract...
In 2015, a baseball player signed a contract reported to be
worth $98.5 million. The contract was to be paid as $14.7 million
in 2015, $14.9 million in 2016, $17.1 million in 2017, $17.2
million in 2018, $17.2 million in 2019, and $17.4 million in 2020.
If the appropriate interest rate is 9 percent, what kind of deal
did the player snag? Assume all payments are paid at the end of the
year. (Enter your answer in dollars, not millions...
Your company has just signed a three-year nonrenewable contract with the city of New Orleans for...
Your company has just signed a three-year nonrenewable contract
with the city of New Orleans for earthmoving work. You are
investigating the purchase of heavy construction equipment for this
job. The equipment costs
$203,000
and qualifies for five-year MACRS depreciation. At the end of
the three-year contract, you expect to be able to sell the
equipment for
$74,000.
If the projected operating expense for the equipment is
$68,000
per year, what is the after-tax equivalent uniform annual
cost (EUAC) of...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- what were some of Ida B Wells significant contributions to the civil rights movement?
- In 2007, there were many people in Sri Lanka who have an opinion that the government...
- Example #2: Write the following set of four linear equations with 4 unknowns x1, x2, x3,...
- "In the digital age, our personal and collective privacy is threatened like it never has been...
- when i type those python code below, i got True, but when i type not a...
- Assume sales for Peach Street Industries are expected to increase by 8.00% from 2015 to 2016....
- Merrimac Manufacturing has always purchased a certain component part from a supplier on the East Coast...
ADVERTISEMENT