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:

Westgate recognizes revenue over time according to percentage of completion

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

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:

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

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

5. 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,990,000 Estimated costs to complete as of year-end 6,020,000 4,160,000 0

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0

Fitch Global Real Estate Corp had the following Q2 FY2016 beginning balances:

Cash = $1,505,000; Rent Receivable = $250,000; Prepaid Expenses = $100,000; Building = $10,500,000; Prepaid Insurance = $150,000; Insurance Expense = $350,000; Unearned Revenue = $50,000; Accounts Payable = $100,000; Accrued Liabilities = $45,000; Salaries Expense = $550,000; Shareholders’ Capital = $12,310,000.

In addition, the company had the following transactions during Q2 that ended on June 30, 2016:

The company’s total rental revenue for Q2 FY2016 was $2,500,000. Of this amount $2,000,000 was collected during Q2 FY2016.

$230,000 of the Rent Receivable outstanding at the beginning of the quarter was collected during Q2 FY2016.

The company incurred total operating expenses of $850,000 for Q2 FY2016. All these expenses were paid except $50,000.

What is the total current assets at the beginning of Q2 FY2016? (10 points)

What is the total current liabilities at the beginning of Q2 FY2016? (10 points)

Present the balance sheet at the end of Q2 2016. (20 points)

Boston Automotive Company sold a car for a total price of $28,300 at the beginning of January 2017 (1/1/17) which included both the manufacturer’s 2-year, 20,000 mile warranty and an extended warranty for an additional 3 years and 30,000 miles. The extended warranty was $1,900 of the total price. Boston Automotive records revenue under its extended warranties using the straight line method. Boston Automotive has estimated the manufacturer’s 2-year warranty will cause the company to incur costs of $1,000 over the course of the two years. In 2017, Boston Automotive incurred actual warranty costs relative to the car of $200 for parts it had in inventory and $450 paid to its mechanics for labor.

Required:

Record all entries required in 2017 related to the sale of the car and the warranties.

What years would Boston Automotive recognize revenue under the extended warranty?

Prepare the journal entry Boston Automotive would prepare in those years for the extended warranty.

Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI’s 2017 and 2016 year-end balance sheets:

Account Title 2017 2016 Accounts receivable $ 48,000 $ 52,000 Merchandise inventory 78,000 72,000 Prepaid insurance 24,000 32,000 Accounts payable 31,000 28,000 Salaries payable 8,200 7,800 Unearned service revenue 2,400 3,600

The 2017 income statement is shown below: Income Statement Sales $ 720,000 Cost of goods sold (398,000 ) Gross margin 322,000 Service revenue 6,000 Insurance expense (36,000 ) Salaries expense (195,000 ) Depreciation expense (12,000 ) Operating income 85,000 Gain on sale of equipment 4,500 Net income $ 89,500

Required Prepare the operating activities section of the statement of cash flows using the direct method. Prepare the operating activities section of the statement of cash flows using the indirect method.