AC323 CHAPTER 18 IN-CLASS SOLUTIONS

AC323 CHAPTER 18 IN-CLASS SOLUTIONS - CHAPTER 18 Revenue...

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CHAPTER 18 Revenue Recognition In-Class Solutions SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 18-1 (a) Sales Returns and Allowances. ...................... 78,000 Accounts Receivable . .............................. 78,000 (b) Sales Returns and Allowances. ...................... 27,000 Allowance for Estimated Sales Returns and Allowances. ...................... 27,000 [(15% X $700,000) – $78,000] BRIEF EXERCISE 18-2 Construction in Process. ........................................ 1,700,000 Materials, Cash, Payables, etc. ....................... 1,700,000 Accounts Receivable . ............................................. 1,200,000 Billings on Construction in Process . ............. 1,200,000 Cash . ........................................................................ 960,000 Accounts Receivable. ...................................... 960,000 Construction in Process. ........................................ 680,000 [($1,700,000 ÷ 5,000,000) X $2,000,000] Construction Expenses . ......................................... 1,700,000 Revenue from Long-Term Contracts. ............. 2,380,000 ($7,000,000,000 X 34%)
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BRIEF EXERCISE 18-4 Construction in Process. ............................................. 1,700,000 Materials, Cash, Payables, etc. ............................ 1,700,000 Accounts Receivable . .................................................. 1,200,000 Billings on Construction in Process . .................. 1,200,000 Cash . ............................................................................. 960,000 Accounts Receivable. ........................................... 960,000 BRIEF EXERCISE 18-6 (a) Construction Expenses. ...................................... 278,000 Construction in Process (Loss) . ................. 20,000* Revenue from Long-Term Contracts . ......... 258,000 (b) Loss from Long-Term Contracts . ....................... 20,000* Construction in Process (Loss) . ................. 20,000 *[$420,000 – ($278,000 + $162,000)] BRIEF EXERCISE 18-7 Installment Accounts Receivable, 2010. .................... 150,000 Installment Sales . ................................................ 150,000 Cash . ............................................................................ 54,000 Installment Accounts Receivable, 2010 . ............ 54,000 Cost of Installment Sales. .............................................. 102,000 Inventory . ................................................................ 102,000
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BRIEF EXERCISE 18-7 (Continued) Installment Sales.
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AC323 CHAPTER 18 IN-CLASS SOLUTIONS - CHAPTER 18 Revenue...

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