Questions
Nailed It! Construction (Nailed It! or the “Company”), an SEC registrant, is a construction company that...

Nailed It! Construction (Nailed It! or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 20X1, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to selling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:

•As of June 30, 20X1, in total, Nailed It! has purchased $75,000 of component parts. As of June 30, 20X1, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 20X1.

•During the three months ended September 30, 20X1, Nailed It! purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 20X1. During the three months ended September 30, 20X1, Nailed It! incurred an additional $50,000 of direct costs to integrate the component parts into the Village Apartments construction project.

•As of September 30, 20X1, Nailed It! determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.

•As of December 31 20X1, the construction project was completed. During the three months ended December 31, 20X1, Nailed It! purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 20X1. Nailed It! has incurred $187,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended December 31,

If Village Apartments cancels the contract, Nailed It! will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Nailed It! will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Nailed It!.

Required: 1.Does the performance obligation meet any of the criteria or recognition of revenue over time?

2.How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods:

2a.The three months ended June 30, 20X1?

2b.The three months ended September 30, 20X1?

2c.The three months ended December 31, 20X1?

How should we journalize the recognition of revenue using the input method?

In: Accounting

On March 1, 2017, the Company entered into an agreement with a customer, Thornock Square Apartments,...

On March 1, 2017, the Company entered into an agreement with a customer, Thornock Square Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Thornock Square Apartments once the construction of the entire building is complete. In addition, Thornock Square Apartments has various design requirements that would require Cannon to incur significant costs to rework the building prior to selling it to a customer other than Thornock Square Apartments.
To construct the apartment building, Cannon acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Thornock Square Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in Thornock Square Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:
A. As of June 30, 2017, in total, Cannon has purchased $75,000 of component parts. As of June 30, 2017, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Cannon has incurred $12,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended June 30, 2017.
B. During the three months ended September 30, 2017, Cannon purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 2017. During the three months ended September 30, 2017, Cannon incurred an additional $50,000 of direct costs to integrate the component parts into the Thornock Square Apartments construction project.
C. As of September 30, 2017, Cannon determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.
D. As of December 31 2017, the construction project was completed. During the three months ended December 31, 2017, Cannon purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 2017. Cannon has incurred $187,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended December 31, 2017.
If Thornock Square Apartments cancels the contract, Cannon will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Cannon will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Cannon.

1) What amount of revenue should be recognized for the following periods: a. The three months ended June 30, 2017? b. The three months ended September 30, 2017? c. The three months ended December 31, 2017? Please explain calculations

2)Create a revenue recognition summary table which summarises the calculations used to find the revenue in each quarter

3)How should the entity recognize revenue for the satisfaction of its performance obligation in FASB code?

(All other chegg answers were wrong for this question)

In: Accounting

a. When examining the effect of price on demand, which factors are taken as given? c....

a. When examining the effect of price on demand, which factors are taken as given?

c. What does a firm use for predicting the revenue consequences of alternative output and pricing policy?

d. Do elasticity and slope mean the same thing? Explain.

e. “There is a direct relationship between MR and price elasticity” Discuss!

In: Economics

Let X1, X2, and X3 represent the times necessary to perform three successive repair tasks at...

Let X1, X2, and X3 represent the times necessary to perform three successive repair tasks at a service facility. Suppose they are normal random variables with means of 50 minutes, 60 minutes, and 40 minutes, respectively. The standard deviations are 15 minutes, 20 minutes, and 10 minutes, respectively.

a) Suppose X1, X2, and X3 are independent. All three repairs must be completed on a given object. What is the mean and variance of the total repair time for this object?

b) Suppose X1, X2, and X3 are independent. All three repairs must be completed on a given object. Find the probability that the total repair time is less than 180 minutes.

c) Suppose that X1, X2, and X3 are dependent so that the covariance between X1 and X2 is -150, between X1 and X3 is 60, and between X2 and X3 is -45. If all three repairs must be completed on a given object, what is the mean and variance of the total repair time for this object?

In: Math

We are interested in exploring the relationship between the weight of a vehicle and its fuel...

We are interested in exploring the relationship between the weight of a vehicle and its fuel efficiency (gasoline mileage). The data in the table show the weights, in pounds, and fuel efficiency, measured in miles per gallon, for a sample of 12 vehicles.

Weight Fuel
Efficiency
2710 24
2570 27
2620 29
2750 38
3000 23
3410 24
3640 21
3700 27
3880 22
3900 19
4060 18
4710 15

e.) What percent of the variation in fuel efficiency is explained by the variation in the weight of the vehicles, using the regression line? (Round your answer to the nearest whole number.)

g.) For the vehicle that weighs 3000 pounds, find the residual (yŷ). (Round your answer to two decimal places.)

i.) Remove the outlier from the sample data. Find the new correlation coefficient and coefficient of determination. (Round your answers to two decimal places.)

correlation coefficient     
coefficient of determination     


Find the new best fit line. (Round your answers to four decimal places.)
ŷ =

In: Statistics and Probability

5) Let's examine the relationship between CI's and hypothesis tests: (a) You calculate a 90% confidence...

5) Let's examine the relationship between CI's and hypothesis tests: (a) You calculate a 90% confidence interval for μ and come up with (-10, 26). If you test H0: μ = 27 and use α = .10, will you reject H0? Why or why not? (b) Now you calculate a 95% CI for μ and come up with (3, 7). If you test H0: μ = 9 and use α = .10, will you reject H0? Why or why not? (c) Finally, you calculate a 95% CI for for μ and come up with (-34, -28). If you test H0: μ = - 27 and use α = .01, will you reject H0? Why or why not?

6) (a) Suppose you test a new medication and reject the null hypothesis (you conclude it works). What kind of error could you have made? (b) Again, you test a new medication and you fail to reject the null hypothesis (you conclude it does not work). What kind of error could you have made?

In: Statistics and Probability

After you run the Regression, answer these questions (type responses in this box): 1. What is...

After you run the Regression, answer these questions (type responses in this box):

1. What is the p-value (the significance)?

2. Is the relationship between Hours in Therapy and Depression Inventory Score statistically significant?

3. Do Depressions Scores increase or decrease as a result of having more Hours in Therapy?

REGRESSION
Hours in Therapy Depression Inventory Score
9 20
9 28
9 20
9 26
11 19
11 15
13 12
13 11
15 10
15 11
16 10
16 8
17 13
17 14
18 10
18 10
21 8
21 9
21 7
21 8
21 8
21 9
22 11
22 10
22 8
22 8
23 10
23 10
24 8
24 10
25 6
25 5
25 4
25 10
27 6
27 6
31 7
31 6
36 10
36 7

In: Statistics and Probability

Best Western Gift shop is interested to know how much money, on average, their customers spend...



Best Western Gift shop is interested to know how much money, on average, their customers spend each visit in the housewares department. They go back through their records and draw a sample of 1,000 and calculate each customer’s average spending on housewares.

a) Identify the population, sample, parameter, statistic, variable and data for this example.

b) Describe a situation in which you would calculate a parameter rather than a statistic.

Best Western determined that each customer’s spending is normally distributed with a mean of $37 and a standard deviation of $3.40.

c) What percentage of people spend between $20 and $32?

d) Customers get a $6 coupon when they spend over $35. Of the next 200 people that visit the store, how many coupons can they expect to give away?

In: Statistics and Probability

The monthly utility bills in a certain city are normally distributed with a mean of $100...

The monthly utility bills in a certain city are normally distributed with a mean of $100 and standard deviation of $12.
a) A utility bill is randomly selected. Find the probability that it is: i) less than $80
ii) between $75 and $ 115
b) What percentage of the utility bills are for more than $125?
c) If 300 utility bills were selected at random, how many would be less than $90?
d) The utility company wants to give a small prize to those customers who do the most to conserve energy. They will give this only to the 15% of customers with the lowest utility bills. What is the highest utility bill one can have and still receive the prize?
e) Forty-one utility bills are selected at random. Determine the probability that the average bill amount is greater than $107

In: Statistics and Probability

Bryant Corporation has provided the following information for the most recent quarter, July 1 through September...

Bryant Corporation has provided the following information for the most recent quarter, July 1 through September 30 of 2020. Prepare a multiple-step Income Statement and the Asset section of a classified Balance Sheet, including the correct headings.

Specific Account

Balance

Specific Account

Balance

Accounts Payable

$30

Insurance Payable

$1

Accounts Receivable

       136

Interest Expense

17

Accumulated Depreciation (Buildings)

    30

Interest Payable

4

Accumulated Depreciation (Equipment)

7

Inventory

    75

Allowance for Doubtful Accounts

13

Land

145

Bad Debt Expense

4

Notes Payable (maturity of less than 1 yr)

   40

Bank Fees Expense

1

Notes Payable (maturity of more than 1 yr)

     55

Buildings

170

Retained Earnings (beginning)

120

Cash

125

Sales Discounts

15

Common Stock

204

Sales Returns & Allowances

5

Cost of Goods Sold

375

Sales Revenue

750

Depreciation Expense

      14

Supplies

6     

Dividends

     17

Supplies Expense

12

Equipment

90

Unearned Sales Revenue

27

Freight-Out

3

Wages Expense

24

Gain on Sale of PPE

9

Wages Payable

31

Income Tax Expense

87

In: Accounting