TakeHome exam2 - Name_ Intermediate Accounting 301 Exam 2...

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Name__________________________ Intermediate Accounting 301 Exam 2 – Take Home Portion 40 points 1. (5 points) Tanner Furniture Company concluded its first year of operations in which it made sales of $1,000,000, all on installment. Collections during the year from down payments and installments totaled $400,000. Purchases for the year totaled $600,000; the cost of merchandise on hand at the end of the year was $120,000. Instructions Using the installment method, make summary entries to record: (a) the installment sales and cash collections; (b) the cost of installment sales; (c) the unrealized gross profit; (d) the realized gross profit. Installment receivables 1,000,000 Inventory 480,000 Deferred gross profit 520,000 Cash 400,000 Installment receivable 400,000 Deffered gross profit 208,000 Realized gross profit 208,000 1
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2. (10 points) Barker Construction specializes in the construction of commercial and industrial buildings. The contractor is experienced in bidding long-term construction projects of this type, with the typical project lasting fifteen to twenty-four months. The contractor uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business and contracts, it is the most appropriate method. Progress toward completion is measured on a cost to cost basis. Barker began work on a lump-sum contract at the beginning of 2007. As bid, the
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This note was uploaded on 05/31/2008 for the course ACCT 301 taught by Professor Bettybrown during the Spring '08 term at University of Louisville.

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TakeHome exam2 - Name_ Intermediate Accounting 301 Exam 2...

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