ACCT 557 Quiz 1
ACCT 557 Quiz 1 Purchase here http://chosecourses.com/ACCT 557/acct-557-quiz-1 Product Description 1. (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 $9,000,000 Construction Start Date March 3, 2012 Construction Complete Date December 4, 2013 As of Dec 31… 2012 2013 Actual cost incurred $3,300,000 $3,560,000 Estimated remaining costs $3,300,000 $- Billed to customer $2,800,000 $6,200,000 Received from customer $2,500,000 $6,200,000 Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013? 2. (TCO A) Kerry Corp purchased a used bottling machine from Bob's Bottling Inc. on Jan 1, 2012 for $450000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $225000. Kerry paid with $75000 cash and a note for $375000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $125000. Kerry Corp made their first payment on Jan 1, 2013 of $162500 which included interest of $37500 to date of payment. As of Dec 31, 2013 Bob has deferred gross profit of? 3. (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: As of Dec 31…. 2012 2013 Percentage of completion 35% 60% Estimated total expected costs $3,750,000 $3,900,000 Gross profit recognized (Cumulative) $225,000 $300,000 Contracted costs incurred during 2013 were… 4. (TCO A) Revenue is NOT recognized at the time of sale when…
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