Question

QUESTION 1 A method of estimating bad debts that focuses on the balance sheet rather than...

QUESTION 1

A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on

a.

direct write-off

b.

aging the trade receivable accounts

c.

credit sales

d.

specific accounts determined to be uncollectible

QUESTION 2

In a business combination, goodwill is defined as the excess of cost over the

a.

fair value of assets acquired

b.

fair value of assets acquired less the liabilities assumed

c.

book value of assets acquired less the liabilities assumed

d.

net book value of assets acquired

QUESTION 3

The amount reported as "Cash" on a company's balance sheet normally should exclude

a.

postdated checks that are payable to the company

b.

cash in a payroll account

c.

undelivered checks written and signed by the company

d.

petty cash

QUESTION 4

Shepard Construction Company has consistently used the percentage-of-completion method. On January 10, 2008, Shepard began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract:

Gross profit recognized at December 31, 2008....................    $300,000

Costs incurred Jan. 10, 2008, through Dec. 31, 2009..........   1,800,000

Estimated cost to complete at December 31, 2009..............      600,000

How much gross profit should Shepard recognize for the year ended December 31, 2009

a.

$150,000

b.

$262,500

c.

$300,000

d.

$450,000
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.aging the trade receivable accounts

2.fair value of assets acquired less the liabilities assumed

3.deposits credited by the bank but not yet recorded by the company.

4.The answer is: Halt should report $150,000 as gross profit

Explanation:

Halt recognized $300,000 as gross profit for Yr 3.

By December 31, Yr 4, Halt had completed 75% of the construction project: ($1,800,000 spent / $1,800,000 + $600,000 cost to complete) x 100 = 75%

Halt anticipated $600,000 as gross profit ($3,000,000 contract price - $2,400,000 expected costs).

To determine the gross profit for Yr 4:

gross profit Yr 4 = ($600,000 total gross profit x 75% completion rate) - $300,000 previously recognized gross profit = $450,000 - $300,000 = $150,000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 1 A method of estimating bad debts that focuses on the balance sheet rather than...
QUESTION 1 A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on a. direct write-off b. aging the trade receivable accounts c. credit sales d. specific accounts determined to be uncollectible QUESTION 2 The amount reported as "Cash" on a company's balance sheet normally should exclude a. postdated checks that are payable to the company b. cash in a payroll account c. undelivered checks written and signed...
A method of estimating bad debts that focuses on the balance sheet rather than the income...
A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on a. direct write-off b. aging the trade receivable accounts c. credit sales d. specific accounts determined to be uncollectible
On its December 31, 2008 balance sheet, the Noble Corporation reported the following as investments in...
On its December 31, 2008 balance sheet, the Noble Corporation reported the following as investments in long-term marketable equity securities. Investment in long-term marketable equity securities at market $300,000 Less Adjustment to reflect decline in market value of marketable equity securities 28,000 At December 31, 2009, the market valuation of the portfolio was $298,000. Noble does not elect to use the fair value option of reporting financial assets. What should Noble report on its 2009 Statement of Income as a...
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet data for the two companies immediately following the acquisition follow: .....................................................Hamlen.................. Pink's Cash.............................................$ 30,000 ..............$25,000 Accounts Receivable........................... 80,000 ................40,000 Inventory........................................ 150,000............... 55,000 Land.............................................. 65,000 ................40,000 Buildings and Equipment...................... 260,000............. 160,000 Less: Accumulated Depreciation............ (120,000)............. (50,000) Investment in Pong Company Stock.......... 150,000 Total Assets...................................... $615,000 ........$270,000 Accounts Payable...............................$ 45,000.......... $ 33,000 Taxes Payable.................................... 20,000............... 8,000 Bonds Payable ................................... 200,000........... 100,000 Common Stock..................................... 50,000 ............20,000 Retained...
Use the starting balance sheet, income statement, and the list of changes to answer the question....
Use the starting balance sheet, income statement, and the list of changes to answer the question. Siam Traders Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 38,000 Liabilities 21,000 Other Assets 25,000 Equity 42,000 Total Assets 63,000 Total Liabilities & Equity 63,000 Siam Traders Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 6,700 Expenses 4,200 Net Income 2,500 Between January 1 and March 31, 2020: 1. Cash decreases by $200,000 2. Other Assets...
Use the starting balance sheet, income statement, and the list of changes to answer the question....
Use the starting balance sheet, income statement, and the list of changes to answer the question. Ruston Company Balance Sheet As of December 31, 2017 (amounts in thousands) Cash 21,000 Liabilities 25,000 Other Assets 31,000 Equity 27,000 Total Assets 52,000 Total Liabilities & Equity 52,000 Ruston Company Income Statement January 1 to March 31, 2018 (amounts in thousands) Revenue 3,100 Expenses 4,400 Net Income -1,300 Between January 1 and March 31, 2018: 1. Other Assets decrease by $200,000 2. Liabilities...
Use the starting balance sheet, income statement, and the list of changes to answer the question....
Use the starting balance sheet, income statement, and the list of changes to answer the question. Lightspeed Industries Balance Sheet As of December 31, 2017 (amounts in thousands) Cash 20,000 Liabilities 37,000 Other Assets 35,000 Equity 18,000 Total Assets 55,000 Total Liabilities & Equity 55,000 Lightspeed Industries Income Statement January 1 to March 31, 2018 (amounts in thousands) Revenue 3,300 Expenses 4,900 Net Income -1,600 Between January 1 and March 31, 2018: 1. Other Assets do not change 2. Liabilities...
Use the starting balance sheet, income statement, and the list of changes to answer the question....
Use the starting balance sheet, income statement, and the list of changes to answer the question. Ruston Company Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 21,000 Liabilities 25,000 Other Assets 31,000 Equity 27,000 Total Assets 52,000 Total Liabilities & Equity 52,000 Ruston Company Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 3,100 Expenses 4,400 Net Income -1,300 Between January 1 and March 31, 2020: 1. Other Assets decrease by $200,000 2. Liabilities...
Use the starting balance sheet and the list of changes to create an updated balance sheet...
Use the starting balance sheet and the list of changes to create an updated balance sheet and to answer the question. Valley Technology Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 2,200 Liabilities 3,600 Other Assets 2,800 Equity 1,400 Total Assets 5,000 Total Liabilities & Equity 5,000 Between January 1 and March 31, 2020: 1. Cash decreases by $200,000 2. Liabilities decrease by $100,000 3. Equity increases by $400,000 What is the value for Other Assets on...
Use the starting balance sheet, income statement, and the list of changes to answer the question....
Use the starting balance sheet, income statement, and the list of changes to answer the question. Lightspeed Industries Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 20,000 Liabilities 37,000 Other Assets 35,000 Equity 18,000 Total Assets 55,000 Total Liabilities & Equity 55,000 Lightspeed Industries Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 3,300 Expenses 4,900 Net Income -1,600 Between January 1 and March 31, 2020: 1. Other Assets do not change 2. Liabilities...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT