In 2018, 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 $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
In: Accounting
]Information for 22 to 26. In 2016 Norcraft Sisters Construction agreed to construct a residence hall at University of Houston at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below.
2016. 2017 2018
Cost incurred during the year 280,000 320,000 850,000
Estimated osts to complete. 520,000 300,000 0
Customer billing date 300,000 400,000 850,000
Collection of billing date 200,000 320,000 800,000
22. Assuming that the percentage-of-completion method is used, compute the amount of gross profit (loss) to be recognized on income statement in 2016 and 2017, respectively
A. $400,000 and 300,000
B. $140,000 and 60,000
C. $140,000 and 200,000
D. $0 and. $0
In: Accounting
In: Accounting
In 2018, 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 | $ | 2,059,000 | $ | 2,627,000 | $ | 2,655,400 | |||
| Estimated costs to complete as of year-end | 5,041,000 | 2,414,000 | 0 | ||||||
| Billings during the year | 2,190,000 | 2,496,000 | 5,314,000 | ||||||
| Cash collections during the year | 1,895,000 | 2,400,000 | 5,705,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)
In: Accounting
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500 each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand. Attendance averages 100 people at each home game.
Part 1 (4 points)
The team earns an average
of $ in revenue for each game
and $ of revenue each
season.
With total costs of $ each
season, the team finishes the season
with $ of profit.
Part 2 (1 point)
In order to break even, the team needs to sell tickets for each game. Round to the nearest whole number.
In: Economics
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand. Attendance averages 30 people at each home game.
1st attempt
Part 1 (4 points)
The team earns an average
of $ in revenue for each game
and $ of revenue each
season.
With total costs of $ each
season, the team finishes the season
with $ of profit.
Part 2 (1 point)
In order to break even, the team needs to sell tickets for each game. Round to the nearest whole number.
In: Economics
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500 each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.
Part 1. The team earns an average of $________________ in
revenue for each game and $______________ of revenue each
season.
With total costs of $_____________ each season, the team finishes
the season with $________________ of profit.
Part 2 In order to break even, the team needs to sell tickets for each game. Round to the nearest whole number.
In: Economics
1/ Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
| Contract amount | $ | 3,270,000 | ||
| Cost: | 2017 | 1,260,000 | ||
| 2018 | 660,000 | |||
| Gross profit: | 2017 | 890,000 | ||
| 2018 | 460,000 | |||
| Contract billings: | 2017 | 1,635,000 | ||
| 2018 | 1,635,000 | |||
ADH recognizes revenue upon completion of the contract.
What is the journal entry in 2018 to record revenue?
Multiple Choice
| Construction in progress | 460,000 | |
| Cost of construction | 660,000 | |
| Revenue from long-term contracts | 1,120,000 |
| Accounts receivable | 1,635,000 | |
| Revenue from long-term contracts | 1,635,000 |
| Construction in progress | 1,350,000 | |
| Cost of construction | 1,920,000 | |
| Revenue from long-term contracts | 3,270,000 |
| Cost of construction | 2,150,000 | |
| Gross profit | 1,120,000 | |
| Revenue from long-term contracts |
3,270,000 |
2/ On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,300,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end.
In its December 31, 2018, balance sheet, Rigsby would report:
Multiple Choice
Installment receivables (net) of $4,560,000.
Installment receivables (net) of $3,009,600.
Realized gross profit of $149,600.
Deferred gross profit of $149,600
3/ Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $750,000 that cost Lake $375,000. Lake collected $250,000 in 2017, $250,000 in 2018, and $250,000 in 2019 associated with those sales. In 2018, Lake sold jet skis with a total price of $1,200,000 that cost Lake $720,000. Lake collected $400,000 in 2018, $270,000 in 2019, and $270,000 in 2020 associated with those sales. In 2020, Lake also repossessed $260,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $97,500 at the time they were repossessed.
In 2017, Lake would recognize realized gross profit of:
Multiple Choice
$0.
$250,000.
$375,000.
$125,000.
4/ Indiana Co. began a construction project in 2018 with a contract price of $161 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $89 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
Indiana:
Multiple Choice
Recognized $72.00 million loss on the project in 2018.
Recognized $36.00 million loss on the project in 2018.
Recognized $10.37 million gross profit on the project in 2018.
Recognized no gross profit or loss on the project in 2018.
In: Accounting
In: Finance
A survey found that women's heights are normally distributed with mean
63.5
in. and standard deviation
3.1
in. The survey also found that men's heights are normally distributed with mean
68.5
in. and standard deviation
3.4
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) The percentage of men who meet the height requirements 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?
MIN & MAX
In: Statistics and Probability