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 | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
Required:
1. 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.)
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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.)
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In: Accounting
EXERCISE 4.9
Relationship of Adjusting Entries to Business Transactions
Among the ledger accounts used by Rapid Speedway are the following: Prepaid Rent, Rent Expense, Unearned Admissions Revenue, Admissions Revenue, Prepaid Printing, Printing Expense, Concessions Receivable, and Concessions Revenue. For each of the following items, provide the journal entry (if one is needed) to record the initial transaction and provide the adjusting entry, if any, required on May 31, assuming the company makes adjusting entries monthly.
On May 1, borrowed $600,000 cash from National Bank by issuing a 9 percent note payable due in three months.
On May 1, paid rent for six months beginning May 1 at $14,400 per month.
On May 2, sold season tickets for a total of $720,000 cash. The season includes 60 racing days: 15 in May, 20 in June, and 25 in July.
On May 4, an agreement was reached with Snack-Bars, Inc., allowing that company to sell refreshments at the track in return for 10 percent of the gross receipts from refreshment sales.
In: Accounting
Cash Budget
Wilson's Retail Company is planning a cash budget for the next
three months. Estimated sales revenue is as follows:
| Month | Sales Revenue | Month | Sales Revenue |
|---|---|---|---|
| January | $300,000 | March | $200,000 |
| February | 205,000 | April | 185,000 |
All sales are on credit; 60 percent is collected during the
month of sale, and 40 percent is collected during the next month.
Cost of goods sold is 80 percent of sales. Payments for merchandise
sold are made in the month following the month of sale. Operating
expenses total $41,000 per month and are paid during the month
incurred. The cash balance on February 1 is estimated to be
$40,000.
Prepare monthly cash budgets for February, March, and April.
Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.
| Wilson's Retail Company Cash Budgets February, March, and April |
|||
|---|---|---|---|
| February | March | April | |
| Cash balance, beginning | |||
| Total Cash receipts | |||
| Cash available | |||
| Total disbursements | |||
| Cash balance, ending | |||
In: Accounting
Investment (more tools) and technological improvement (better tools) each contribute to economic growth by making labor more productive. What percentage of the U.S. economy is allocated to investment in a normal year? Also, describe how fast the U.S. economy grows in real terms on a per capita basis in an average year?
In: Economics
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In: Operations Management
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In: Biology
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In: Economics
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a. What milestones/steps are included in this process and when do they occur?
b. What structures are formed as the embryo develops?
c. How do the structures identified in part “b” contribute to embryonic development? ~Part "b" refers to the answer to part b, not a diagram.
In: Biology
Mr. Joe is confined to bed in skeletal traction for
fractured femur. Respiratory complications are just one of the many
issues related to immobility.
How does immobility contribute to respiratory complications?What
are some additional factors which promotes stasis of secretions?
What are some nursing interventions to decrease respiratory
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In: Nursing
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In: Biology