A survey found that? women's heights are normally distributed with mean 62.7 in. and standard deviation of 3.4 in. The survey also found that? men's heights are normally distributed with mean of 69.3 in. and a standard deviation of 3.6 in. Most of the live characters employed at an amusement park have height requirements of a minimum of 55 in. and a maximum of 64 in. Complete parts? (a) and? (b) below.

a)Find the percentage of men meeting the height requirement. What does the result suggest about the genders of the people who are employed as characters at the amusement? park?

The percentage is ______?

b)if the height requirements are changed to exclude only the tallest? 50% of men and the shortest? 5% of? men, what are the new height? requirements?

The new height requirements are a minimum of __ inches and a maximum of __ inches?

Problem 1: Long-Term Contract

At the beginning of 2018, the Harding Construction Company received a contract to build an office for $5 million.

Harding will construct the building according to the specifications provided by the buyer, and the project is estimated to take three years to complete.

According to the contract, Harding will be the buyer in installments over the construction period according to a prearranged schedule.

Information related to the contract is as follows:

2018                    2019                2020

Construction costs incurred during the year            $1,500,000        $1,000,000       $1,600,000

Construction cost incurred in prior years                               -0-            1,500,000          2,500,000

                                                                                            --------------         -------------           -------------

Cumulative actual construction costs                            1,500,000         2,500,000         4,100,000

Estimated costs to complete at end of year                  2,250,000         1,500,000                  -   0 -

                                                                                               --------------         --------------        -------------

Total estimated and actual construction costs             3,750,000           4,000,000         4,100,000

Billing made during the year                                              1,200,000          2,000,000        1,800,000

Cash collections during the year                                       1,000,000           1,400,000       2,600,000

            Task:

                        (ii) Determine the revenue amount under the percentage of completion method.

Problem 1: Long-Term Contract

At the beginning of 2018, the Harding Construction Company received a contract to build an office for $5 million.

Harding will construct the building according to the specifications provided by the buyer, and the project is estimated to take three years to complete.

According to the contract, Harding will be the buyer in installments over the construction period according to a prearranged schedule.

Information related to the contract is as follows:

2018                    2019                2020

Construction costs incurred during the year            $1,500,000        $1,000,000       $1,600,000

Construction cost incurred in prior years                               -0-            1,500,000          2,500,000

                                                                                            --------------         -------------           -------------

Cumulative actual construction costs                            1,500,000         2,500,000         4,100,000

Estimated costs to complete at end of year                  2,250,000         1,500,000                  -   0 -

                                                                                               --------------         --------------        -------------

Total estimated and actual construction costs             3,750,000           4,000,000         4,100,000

Billing made during the year                                              1,200,000          2,000,000        1,800,000

Cash collections during the year                                       1,000,000           1,400,000       2,600,000

            Task:

                        (ii) Determine the revenue amount under the percentage of completion method.

You are the accountant of White Hotel Berhad, a corporation that engages in the hotel businesses. The corporation is having a high value of buildings and has been using historical cost to measure it. The directors of White Hotel Berhad wanted to continue using the historical cost measurement since they feel that the valuation exercise is costly to the corporation. Prepare a note explaining 4 drawbacks of using the historical cost measurement for buildings.

Using Percentage-of-Completion and Completed Contract Methods

Halsey Building Company signed a contract to build an office building for $40,000,000. The scheduled construction costs follow.

The building is completed in 2018.
For each year, compute the revenue, expense, and gross profit reported for this construction project using each of the following methods.

a. Percentage-of-completion method

b. Completed contract method

The manager of a hotel is negotiating with a client the room rate that will be charged to the attendees of an assembly to be held at the hotel. In this type of activity, the organizers are responsible for obtaining a rate for the rooms that is competitive for the attendees and for a minimum number of people to stay during the activity. The cost of the rooms is paid by the attendees and is NOT included in the cost of registration paid to attend the Assembly. The organizers are responsible for paying for the food during the activities (breakfast, lunch and snack, this includes the service and other activities to support the assembly), in exchange for this they can use the conference rooms for free. The cost of the dinner is not covered in the cost of the rooms or by the organizers. The cost of the room DOES NOT include breakfast, lunch or dinner. It also does not include the cost of washing or ironing clothes. The hotel provides free internet, but does not include long distance calls as part of the room rate. The client estimates that the meeting will be attended by 200 people and that at least 10% of them will stay at the hotel because they come from abroad. The activity will take place during the hotel's off-season, so the manager understands that he will have enough rooms available to fulfill the agreement.

1. What costs do you think the hotel manager should take into account when calculating the total cost per room per night that will be charged to regular clients (assume that all rooms are the same)? DO NOT use monetary amounts, neither real nor hypothetical. Provide a list of 10 costs in the following format. It must include some costs that are specifically for the room and others of the hotel in general

2. What costs do you think the hotel manager should take into account when calculating the total cost per room per night that will be granted to those attending the meeting? Using the same list above, add a column to indicate if it is relevant or not.

3 Assembly attendees always have the option of staying at the Assembly hotel or in another nearby hotel. In addition to the costs, what other considerations or variables can the hotel manager take into account when promoting their rooms and the hotel between the registration of the Assembly? Provide a list

What three conceptual factors affect the decision as to when to recognize revenue.

What are the three revenue recognition alternatives?

Under what circumstances does a company recognize revenue prior to the completion of the earnings process?

Under what circumstances does a company use the percentage of completion method for long term contracts?

How may the departure from the principle of recognizing revenue only at the completion of the earnings process be justified when a company uses the percentage of completion method.

Describe input ad output measures used in the percentage of completion method. Give an example of each.

How does a company account for losses under the two methods of accounting for long term construction contracts?

How does a company classify the following accounts in its financial statements: Construction in Progress, Partial billings, Construction Revenue, and Construction Expense?

Describe the difference between the cost recovery method and the installment method of revenue recognition.

When a contract has multiple elements (multiple deliverables), how does GAAP determine if one of the elements should be considered a separate unit of accounting?

Distinguish between the initial franchise fee and continuing franchise fee. When is each recognized as revenue?

How is revenue recognized for real estate sales?

In a consignment, does consignee or consignor retain title to the property? When is revenue recognized by the consignor? The consignee?

The second half of the 1940s was a period of A. recession. B. no economic growth. C. very slow economic growth. D. fairly high economic growth.