Question
In: Accounting
FinanceCo lent $10.0 million to Corbin Construction on January 1, 2021, to construct a playground. Corbin...
FinanceCo lent $10.0 million to Corbin Construction on January
1, 2021, to construct a playground. Corbin signed a three-year, 6%
installment note to be paid in three equal payments at the end of
each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1
and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required:
1. Prepare the journal entry for FinanceCo’s
lending the funds on January 1, 2021.
2. Prepare an amortization schedule for the
three-year term of the installment note.
3. Prepare the journal entry for the first
installment payment on December 31, 2021.
4. Prepare the journal entry for the third
installment payment on December 31, 2023.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
FinanceCo lent $8.6 million to Corbin Construction on January 1, 2021, to construct a playground. Corbin...
FinanceCo lent $8.6 million to Corbin Construction on January 1,
2021, to construct a playground. Corbin signed a three-year, 6%
installment note to be paid in three equal payments at the end of
each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1
and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required:
1. Prepare the journal entry for FinanceCo’s
lending the funds on January 1, 2021.
2. Prepare an amortization...
FinanceCo lent $8 million to Corbin Construction on January 1, 2018, to construct a playground. Corbin...
FinanceCo lent $8 million to Corbin Construction on January 1,
2018, to construct a playground. Corbin signed a three-year, 6%
installment note to be paid in three equal payments at the end of
each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1
and PVAD of $1) (Use appropriate factor(s) from the tables
provided.) Required: 1. Prepare the journal entry for FinanceCo’s
lending the funds on January 1, 2018. 2. Prepare an amortization...
Pockets lent $20,000 to Lego Construction on January 1, 2018. Lego signed a three-year, 5% installment...
Pockets lent $20,000 to Lego Construction on January 1, 2018.
Lego signed a three-year, 5% installment note to be paid in three
equal payments at the end of each year.
Required:
(1.) Prepare the journal entry on January 1,
2018, for Pockets' lending the funds.
(2.) Calculate the amount of one installment
payment.
(3.) Prepare an amortization schedule for the
three-year term of the installment note.
(4.) Prepare Pockets' journal entry for the
first installment payment on December 31, 2018....
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows:
2021
2022
2023
Cost incurred during the year
$
1,584,000
$
3,240,000
$
2,613,600
Estimated costs to complete as of year-end
5,616,000
2,376,000
0
Billings during the year
1,200,000
3,624,000
5,176,000
Cash collections during the year
1,000,000
2,800,000
6,200,000
Assume that Westgate Construction’s contract with Santa...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows:
2021
2022
2023
Cost incurred during the year
$
2,100,000
$
3,150,000
$
2,475,000
Estimated costs to complete as of year-end
5,400,000
2,250,000
0
Billings during the year
2,150,000
3,100,000
4,750,000
Cash collections during the year
1,875,000
3,100,000
5,025,000
Westgate recognizes revenue over time according to...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows:
2021
2022
2023
Cost incurred during the year
$
3,471,000
$
4,005,000
$
1,566,400
Estimated costs to complete as of year-end
5,429,000
1,424,000
0
Billings during the year
2,900,000
4,576,000
2,524,000
Cash collections during the year
2,700,000
4,500,000
2,800,000
Assume that Westgate Construction’s contract with Santa...
In 2021, the Westgate Construction company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction company entered into
a contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows.
2018
2019
2020
Cost incurred during the year
$
2,044,000
$
2,628,000
$
2,890,800
Estimated costs to complete as of year-end
5,256,000
2,628,000
0
Billings during the year
2,170,000
2,502,000
5,328,000
Cash collections during the year
1,885,000
2,600,000
5,515,000
5. Calculate the amount of revenue and...
In 2021, the Westgate Construction company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows.
2018
2019
2020
Cost incurred during the year
$
2,044,000
$
2,628,000
$
2,890,800
Estimated costs to complete as of year-end
5,256,000
2,628,000
0
Billings during the year
2,170,000
2,502,000
5,328,000
Cash collections during the year
1,885,000
2,600,000
5,515,000
3. Complete the information required below to...
in 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
in 2021, the Westgate Construction Company entered into
a contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows: 2018 2019 2020 Cost incurred during the
year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to
complete as of year-end 5,256,000 2,628,000 0 Billings during the
year 2,170,000 2,502,000 5,328,000 Cash collections during the year
1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time
according to...
In 2021, the Westgate Construction Company entered into a contract to construct a bridge for $12,000,000....
In 2021, the Westgate Construction Company entered into a
contract to construct a bridge for $12,000,000.
The bridge was completed in 2023. Information related to the
contract is as follows:
2021 2022 2023
Cost incurred during the year $1,840,000 $3,760,000
$4,500,000
Estimated costs to complete as of year-end $6,160,000 $5,600,000
$0
Billings during the year $3,000,000 $4,000,000 $5,000,000
Cash collections during thee year $2,600,000
$3,900,000 $5,100,000
a. Westgate recognizes revenue over time according to percentage
of completion....
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