Question 2
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Sage Construction Company began work on a $415,500 construction
contract in 2020. During 2020, Sage incurred costs of $286,000,
billed its customer for $209,500, and collected $178,500. At
December 31, 2020, the estimated additional costs to complete the
project total $152,650.
Prepare Sage’s journal entry to record profit or loss, if any,
using (a) the percentage-of-completion method and (b) the
completed-contract method. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the amounts. Round answers to 0
decimal places, e.g. 5,275.)
|
No. |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
(a) |
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
|
|
(b) |
enter an account title to record the transaction using the completed-contract method |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction using the completed-contract method |
enter a debit amount |
enter a credit amount |
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Wed, Apr 29, 2020, 9:07:49 PM (America/Los Angeles -07:00)
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 | $ | 2,580,000 | $ | 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.
2-a. In the journal below, complete the
necessary journal entries for the year 2018 (credit "Various
accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2019 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2020 (credit "Various accounts" for
construction costs incurred).
Complete this question by entering your answers in the tabs below.
In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
| No | Date | General Journal | Debit |
|---|
In: Accounting
Sheridan Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet.
| Preferred stock, 9%, $100 par (10,000 shares authorized, 1,900 shares issued) | $190,000 | |
| Common stock, $5 par (98,000 shares authorized, 19,600 shares issued) | 98,000 | |
| Additional paid-in capital | 117,000 | |
| Retained earnings | 470,000 | |
| Total | $875,000 |
During 2020, Sheridan took part in the following transactions
concerning stockholders’ equity.
| 1. | Paid the annual 2019 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. | |
| 2. | Purchased 1,700 shares of its own outstanding common stock for $37 per share. Sheridan uses the cost method. | |
| 3. | Reissued 700 treasury shares for land valued at $29,500. | |
| 4. | Issued 450 shares of preferred stock at $104 per share. | |
| 5. | Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. | |
| 6. | Issued the stock dividend. | |
| 7. | Declared the annual 2020 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021. |
Prepare journal entries to record the transactions described
above. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select "No Entry" for the account titles and
enter 0 for the amounts.)
Prepare the December 31, 2020, stockholders’ equity section. Assume 2020 net income was $341,000. (Enter account name only .Do not provide any descriptive information.)
In: Accounting
Exercise 21-12 (Part Level Submission) On January 1, 2020, Pharoah Company leased equipment to Flynn Corporation. The following information pertains to this lease.
1. The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $1,000, while the expected residual value at the end of the lease is $9,000.
2. Equal rental payments are due on January 1 of each year, beginning in 2020.
3. The fair value of the equipment on January 1, 2020, is $120,000, and its cost is $110,000.
4. The equipment has an economic life of 8 years. Flynn depreciates all of its equipment on a straight-line basis.
5. Pharoah set the annual rental to ensure a 6% rate of return. Flynn’s incremental borrowing rate is 8%, and the implicit rate of the lessor is unknown.
6. Collectibility of lease payments by the lessor is probable.
Both the lessor and the lessee’s accounting periods end on December 31.
(e)
| Your answer is partially correct. Try again. | |
Prepare all the necessary journal entries for Flynn for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
1/1/2012/31/20 |
|||
|
(To record the lease) |
|||
|
1/1/2012/31/20 |
|||
|
(To record the lease payment) |
|||
|
1/1/2012/31/20 |
|||
|
(To record amortization of the right-of-use asset) |
|||
|
1/1/2012/31/20 |
|||
|
(To record interest expense) |
In: Accounting
In: Accounting
You have been asked by the CEO to interview potential candidates to manage the subject three projects. discuss at least 5 skills that would be essential for the project managers to have in order to ensure delivery of the projects on time, within cost and within desired quality
In: Operations Management
Facebook collects massive amounts of data, which the CEO states, is used to improve the "user's experience." He also states that the user has control of their own data and privacy through available settings as mentioned in their Terms of Service. Do you agree or disagree?
In: Operations Management
You are tasked with briefing the CEO on the financial status of the organization. How do you explain the financial performance of your organization? What measures do you use to explain logistics and supply chain performance? Can the income statement and balance sheet be used to measure logistics and supply chain performance?
In: Other
Suppose you are the CEO of MotorABC, and you are considering investing in the following project. The life cycle of the project takes 6 years. During the first three years, the project requires fixed investments, and the project generates risky earnings throughout its life cycle.
The investments committed to the project are shown in the following table:
Year 0 1 2 3
Investments (million) 6 6 6
The expected earnings from the project are shown in the following table:
Year 0 1 2 3 4 5 6
Earnings (million) 5 5 5 5 5 5
Suppose the yield curve (EAR) is flat at 1%, and the discount rate for the risky Earnings is flat at 20%. You are standing at time 0 now. State any additional assumptions you need to make.
(a) What is the NPV of the project. Would you invest in this project?
(b) Suppose now the earnings for the first three years (1,2,3) are guaranteed and no longer risky while the risk of the remaining earnings stays the same, would you invest in the project? Explain.
In: Finance
Let us consider the case of John, an entrepreneur and the CEO of a startup, named “Home Service”. The company started a small scale service where a couple of signed-up workers of the company were giving various services to the dweller of Ballarat, a city in Victoria. The services include plumbing, electric works, gas appliances’ works, and car wash. The people are Ballarat dwellers (roughly 20k in total) needed to download the software from App Store/Google Store and try to find someone in Ballarat who can provide the required service. They post a job in the app with estimated pricing, and then the interested workers pick the task. Then they go after a couple of rounds of message exchange through the app to understand the weight of the work and they finalize the total costing for that. The app then takes a service charge for the task, while the workers receive the remaining money. The business got tremendous popularity among the inhabitant of the city while people from other cities were also looking for services. Currently, John’s system is receiving around 10 requests per hour for various services.
As mentioned above, due to selecting only one city and a fixed number of services, John’s current system is like a simple computer where he deployed all his codes. To be more specific, the webserver, backend API codes, and a database server are installed in one virtual machine (VM) in the cloud, while the mobile apps are deployed in the Apple store and Google store.
John has decided to extend his business by outspreading the service area to all over Australians and to incorporate more services like catering, food delivery, carpet cleaning, gardening, and many more. To incorporate the above requirements, John’s current platform (i.e., one VM with everything installed in that VM) is not capable of meeting the future requirements.
You are hired by John to extend his current platform to a distributed system so that your proposed system will be capable to deal with millions of users, thousands of workers, hundreds of services, and thousands of requests per hour to the system.
You have to propose a new distributed system so that it can cope with future demand. You are not required to draw any diagram, rather you should mention how many (roughly) new VM, Database servers/Web servers are required to deploy. Most importantly, you have to discuss thoroughly how your PROPOSED system takes the advantages of a distributed system (i.e., Resource sharing, sharing of hardware and software, Openness, Concurrency, Scalability, Fault tolerance, Transparency).
In: Computer Science