ACCT 557 Week 1 Quiz
- Question (TCO A) Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:
Total Construction Fixed Price $8,000,000
Construction Start Date March 3, 2012
Construction Complete Date December 4, 2013
As of Dec 31… 2012 2013
Actual cost incurred $2,500,000 $3,150,000
Estimated remaining costs $3,750,000 $-
Billed to customer $2,400,000 $5,300,000
Received from customer $2,250,000 $5,400,000
Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?. - Question (TCO A) Kerry Corp purchased a used bottling machine from Bob’s Bottling Inc. on Jan 1, 2012 for $2100000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $1575000. Kerry paid with $300000 cash and a note for $1800000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $600000. Kerry Corp made their first payment on Jan 1, 2013 of $780000 which included interest of $180000 to date of payment. As of Dec 31, 2013 Bob has deferred gross profit of ?
- Question (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $4500000. Additional information was provided:
- Question (TCO A) Revenue should NOT be recognized at the time of sale if…
- Question (TCO A) Windsor Construction Company uses the completed contract method of accounting. In 2014, Windsor began work on a two year contract it had received which provided for a contract price of $3,000,000. Other details follow for 2014:……………….What should be the gross profit recognized in 2014?
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