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:

Westgate recognizes revenue over time according to percentage of completion.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Nizwa Municipality follows fund accounting. The following transactions took place during the year 2019.

The government imposes a tax on Liquified Petroleum Gas (LPG) to compensate the loss in revenue due to decline in oil prices. This tax revenue is planned to be used exclusively for improving the health facilities in the local health centers. The tax revenue collected in Al Dakhiliyah Governorate until for the year 2019 amounts to RO 40,000. The governorate spent RO 37,000 for purchase of medical equipments in the local health centers.

You are required to state for each of the transactions above,:

 Pass journal entries in each of the respective funds

 Briefly explain the Basis of accounting, the accounting treatment and the measurement focus of these transactions in the respective funds where these transactions are accounted.

Macro Company has the following adjusted accounts and balances at June 30: Accounts Payable $ 300 Accounts Receivable 550 Accumulated Amortization 150 Accumulated Depreciation 250 Cash 1,020 Common Stock 300 Deferred Revenue 100 Depreciation Expense 110 Equipment 1,400 Income Tax Expense 110 Income Tax Payable 30 Interest Expense 180 Interest Revenue 50 Notes Payable (long-term) 1,300 Office Expenses 820 Prepaid Rent 40 Rent Expense 400 Retained Earnings 120 Salaries and Wages Expense 660 Sales Revenue 3,600 Software 200 Supplies 710 Prepare an adjusted trial balance for Macro company at June 30.

E4.1 (LO 1, 3) The trial balance columns of the worksheet for Dixon Company at June 30, 2020, are as follows.

Dixon Company

Worksheet

For the Month Ended June 30, 2020

Trial Balance

Account Titles Dr. Cr.

Cash 2,320

Accounts Receivable 2,440

Supplies 1,880

Accounts Payable 1,120

Unearned Service Revenue 240

Owner’s Capital 3,600

Service Revenue 2,400

Salaries and Wages Expense 560

Miscellaneous Expense 160

7,360 7,360

Other data:

1. A physical count reveals $500 of supplies on hand.

2. $100 of the unearned revenue is still unearned at month-end.

3. Accrued salaries are $210.

Instructions Enter the trial balance on a worksheet and complete the worksheet.

James Closing Entries Practice Problem

Prepare closing entries in the format used by accountants. To do this, close the revenue, expense, and drawing accounts in the following order:

(a) Close the revenue account to Income Summary.

(b) Close the expense accounts to Income Summary.

(c) Make sure that the balance in Income Summary equals net income. If it doesn’t, correct entries from (a) or (b).

(d) Close Income Summary to Capital.

(e) Close the drawing account to Capital.

After you have completed all the entries, compute the balance in the capital account.

Hello Tutor: Could you please explain why do we use (debit) the "Due from State Government" for the amount given???

Here is the prompt again: During FY 2020, the City of Smithville received notification that the state government would send $150,000 at the beginning of the next fiscal year. Based on the city’s definition of “available for use,” the city considers the funds available for General Government’s use in the current reporting period. The budget for the current year included this amount as "Intergovernmental Revenue.” Required: Record this transaction as a receivable and revenue in the General Fund and governmental activities journals. (Note: Select “Accrued Revenue” in the [Description] menu in the Detail Journal). At the government-wide level, assume that this item is an operating grant to the Culture and Recreation function.

Extensions of Demand and Supply Analysis

1. Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a
   nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.

2- Calculate total-revenue data from the demand schedule in question 2. Graph total revenue below your demand curve. Generalize about the relationship between price elasticity and total revenue.

Online Storage Inc. reported pretax accounting income in 2018, 2019, and 2020 of $40 million, $70 million, and $75 million, respectively. The 2018 income statement does not include $15 million of revenue from cloud storage subscriptions received that year for one- and two-year subscriptions. The subscription revenue is reported for tax purposes in 2018. The revenue will be recognized in 2019 ($5 million) and 2020 ($10 million). The income tax rate is 20% each year. At the end of 2018, Management determines that it’s more likely than not that 1/3 of the deferred tax asset ultimately will not be realized. Required: Prepare a compound journal entry to record the income tax expense for the year 2018. Remember to account for any potential valuation allowance.

Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,500 that had a $4,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,000 cash. Bensen uses straight-line depreciation:

Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model.

Bensen Company started business by acquiring $26,300 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,300 that had a $3,900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,330 cash. Bensen uses straight-line depreciation. Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $ 7,640 $ 8,140 $ 8,340 $ 7,140 $ 0 Required Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years.