320CheckFigures_18

# 320CheckFigures_18 - are a % of selling price. Advertising...

This preview shows pages 1–2. Sign up to view the full content.

CHAPTER 18 Revenue Recognition CHECK FIGURES EXERCISE 18-6 Gross profit to be recognized \$ 180,000 EXERCISE 18-7 E18-7 Part b asks you to prepare balance sheet disclosures related to the construc- tion contract. The last line of the balance sheet should be the difference between the balance in CIP and the related billings just like we did in class. WileyPLUS is calling this line “Inventories-construction in process totaling” rather than CIP in excess of billings like we did in class. EXERCISE 18-9 (a) Computation of Billings on Uncompleted Contract in Excess of Related Costs un - der Completed-Contract Method . \$ (314,200 ) (b) Computation of Gross Profit to Be Recognized under Percentage-of-Completion Method . \$ 134,200 Computation of Billings on Uncompleted Contract in Excess of Related Costs un - der Percentage-of-Completion Method . \$ (180,000) EXERCISE 18-21 The total cost to ship the freezers was \$840 or \$10.50 for each freezer. Commissions

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: are a % of selling price. Advertising is \$200 total (not per freezer). The \$320 installa-tion costs are only on the freezers sold and do not relate to the ones remaining on consignment. 18-1 PROBLEM 18-7 Problem 18-7 is a good one to work on contract losses, but it is only available in the text, not WileyPLUS. I have copied it below so you can use it to answer the four ques-tions I posted for you: (Long-Term Contract with an Overall Loss) On July 1, 2010, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total con-tract price of \$1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2012, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2010, 2011, and 2012. 18-2...
View Full Document

## This note was uploaded on 11/22/2010 for the course ACCT 320 taught by Professor Alee during the Spring '10 term at Kansas State University.

### Page1 / 2

320CheckFigures_18 - are a % of selling price. Advertising...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online