Chapter 12A - 5,700,000 Actual Costs Incurred: 4,500,00...

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Chapter 12A P12-1A: 1. The assumption that Scott would be violating would be the Going Concern Assumption. 2. The principle Scott would be violating is the Cost Principle. 3. The principle that Scott would be violating would be Conservation and Full Disclosure Principle which stated that if you are in doubt you should always understate net income than overstate and have people think your company is worth more than it really is. 4. The principle that Scott is violating would be the matching principle. Land 60,000 Gain on Appreciation of Land 30,000 5.The principle that Scott would be going against is the Cost Principle. Equipment 35,000 Gain 10,000 P12-3A : 2004 2005 2006 2007 Contract Price: 38,000,000 38,000,000 38,000,000 38,000,000 Actual Costs Incurred: 4,500,000 10,500,00 22,500,000 30,000,000 Estimate Costs: 25,500,00 19,500,00 7,500,000 0 Total Estimate Cost: 30,000,000 30,000,000 30,000,000 30,000,000 Profit: 8,000,000 8,000,000 8,000,000 8,000,000 Long Term: To Date Prior Year Current Year 2004 with 15% completed Revenue (38,000,000*.15)= 5,700,00
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Unformatted text preview: 5,700,000 Actual Costs Incurred: 4,500,00 4,500,000 Gross Profit: 1,200,000 1,200,000 2005 with 35% completed Revenue (38,000,000*.35)= 13,300,0005,700,000 7,600,000 Actual Costs Incurred: 10,500,000 4,500,000 6,000,000 Gross Profit: 2,800,000 1,200,000 1,600,000 2006 with 75% completed Revenue (38,000,000*.75)= 28,500,00013,300,000 15,200,000 Actual Costs Incurred: 22,500,000 10,500,000 12,000,000 Gross Profit: 6,000,000 2,800,000 3,200,000 2007 with 100% completed Revenue = 38,000,00028,500,000 9,500,000 Actual Costs Incurred: 30,000,000 22,500,00 7,500,000 Gross Profit: 8,000,000 6,000,000 2,000,000 P12-4A: (a). year gross profit 2004 (800,000*.36)=288,000 2005 (1,200,000*.36)=432,000 2006 (500,000*.36)=180,000 (b). year gross profit 2004 (800,000*.30)=240,000 2005 (1,200,000*.30)=360,000 2006 (500,000*.30)=150,000 P12-5A: (a).9 (b). 7 (c). 3 (d). 4 (e). 8 (f). 1 (g).5 (h). 10 P12-5B: (a):5 (b):2 (c):3 (d):9 (e):7 (f):1 (g):4 (h):6 (i):10...
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This note was uploaded on 10/20/2010 for the course BUS 102-701 taught by Professor Matijas during the Spring '10 term at Cayuga Community College.

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Chapter 12A - 5,700,000 Actual Costs Incurred: 4,500,00...

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