Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,240,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 363,000 | $ | 2,688,000 | $ | 4,534,000 | |||||
| Estimated costs to complete | 3,267,000 | 1,792,000 | 0 | ||||||||
| Billings to Axelrod, to date | 724,000 | 2,250,000 | 4,240,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2021, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $5,020,000. The building was completed on December 31, 2023. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2021 At 12-31-2022 At 12-31-2023 Percentage of completion 10 % 60 % 100 % Costs incurred to date $ 376,000 $ 3,234,000 $ 5,457,000 Estimated costs to complete 3,384,000 2,156,000 0 Billings to Axelrod, to date 737,000 2,510,000 5,020,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Please help me solve this problem!
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$5,020,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 376,000 | $ | 3,234,000 | $ | 5,457,000 | |||||
| Estimated costs to complete | 3,384,000 | 2,156,000 | 0 | ||||||||
| Billings to Axelrod, to date | 737,000 | 2,510,000 | 5,020,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2021, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,480,000. The building was completed on December 31, 2023.
Estimated percentage of completion, accumulated contract costs
incurred, estimated costs to complete the contract, and
accumulated billings to Axelrod under the contract were as
follows:
| At 12-31-2021 | At 12-31-2022 | At 12-31-2023 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 367,000 | $ | 2,856,000 | $ | 4,818,000 | |||||
| Estimated costs to complete | 3,303,000 | 1,904,000 | 0 | ||||||||
| Billings to Axelrod, to date | 728,000 | 2,330,000 | 4,480,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years. Curtiss
concludes that the contract does not qualify for revenue
recognition over time.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2021 and 2022 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,660,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2018 At 12-31-2019 At 12-31-2020 Percentage of completion 10 % 60 % 100 % Costs incurred to date $ 405,000 $ 2,940,000 $ 5,031,000 Estimated costs to complete 3,260,000 2,030,000 0 Billings to Axelrod, to date 885,000 2,390,000 4,660,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$5,080,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 377,000 | $ | 3,276,000 | $ | 5,528,000 | |||||
| Estimated costs to complete | 3,393,000 | 2,184,000 | 0 | ||||||||
| Billings to Axelrod, to date | 738,000 | 2,530,000 | 5,080,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,780,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 372,000 | $ | 3,066,000 | $ | 5,173,000 | |||||
| Estimated costs to complete | 3,348,000 | 2,044,000 | 0 | ||||||||
| Billings to Axelrod, to date | 733,000 | 2,430,000 | 4,780,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Business Law II
1) Please distinguish between the legal effect of a personal defense and a universal defense. see Exhibit 27-2 on page 507 for a summary of these defenses.
2) Disinguish between fraud in the inducement and fraud in the execution of the instrument.
3) Distinguish between a material alteration and an unauthorized completion of an instrument.
In: Accounting
A telephone service representative believes that the proportion of customers completely satisfied with their local telephone service is different between the West and the Northeast. The representative's belief is based on the results of a survey. The survey included a random sample of 12401240 western residents and 13001300 northeastern residents. 46%46% of the western residents and 35%35% of the northeastern residents reported that they were completely satisfied with their local telephone service. Find the 98%98% confidence interval for the difference in two proportions.
Step 2 of 3:
Find the value of the standard error. Round your answer to three decimal places.
Step 3 of 3:
Construct the 98%98% confidence interval. Round your answers to three decimal places.
In: Statistics and Probability
According to the 2017 video, an audit found that Chinese theaters were shortchanging Hollywood movie studios. These studios have been releasing major blockbusters with both storylines and characters that are meant to specifically target Chinese audiences. In fact, studios depend on these overseas audiences to save critically slammed blockbusters.
Auditors at PriceWaterhouseCoopers (PwC) found that about 9% of ticket revenues were unreported or skimmed and that this amounted to at least $40 million in revenue for the six major studios.
Issues noted in the audit resulting in missing revenue included: Sales listed as concessions, incorrect audience numbers, and screenings that were completely unreported.
This was part of an investigation on behalf of the Motion Picture of America Association (MPAA). The auditors examined the 29 biggest blockbuster movies released in China in 2016 and looked at 125 screen locations run by 27 different movie chains.
At the time of the video and the report, the U.S. motion picture industry was renegotiating a revenue sharing agreement with China, since the original five-year agreement ended. At question were the push by Hollywood to have more market access, as well as the Chinese to boost product from their growing movie industry.
The investigation was only a sample of screens. In fact, China has the largest number of screens in the world, numbering about 43,000.
Prior to renegotiating the WTO agreement on revenue sharing, U.S. studios officially grossed $1.87 Billion and took home $470 M.
What events or agreements in 2017 indicated that audits between studios and the Chinese movie market would become more important?
What was the revenue sharing percentage prior to renegotiation of the 2017 WTO agreement?
According to the textbook, revenue recognition is more problematic with respect to audit inherent risks in some industries, as compared to others. Would this be the case in the movies industry in China? Why?
Revenue recognition in Chinese movie theaters is also problematic with respect to audit control risks. Why?
In: Accounting