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25 the percentage of completion method must be used

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25.The percentage-of-completion method must be used when certain conditionsexist. Which of the following isnotone of these necessary conditions?a.Estimates of progress toward completion, revenues, and costs arereasonably dependable.b.The contractor can be expected to perform the contractual obligation.c.The buyer can be expected to satisfy some of the obligations under thecontract.d.The contract clearly specifies the enforceable rights of the parties, theconsideration to be exchanged, and the manner and terms of settlement.6
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/Accounting-27th-Edition-9781337272094-15/
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Chapter 15 / Exercise PE15-2B
Accounting
Reeve/Warren
Expert Verified
7
Trading equity securities.(36 total points)Korman Company has the following securities in its portfolio of trading securities onDecember 31, 2014:CostFairValue5,000 shares of Thomas Corp., Common$151,000$139,00010,000 shares of Gant, Common182,000190,000$333,000$329,000All of the securities had been purchased in 2014. In 2015, Korman completed thefollowing securities transactions:March 1Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500.April 1Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550.The Korman Company portfolio of trading securities appeared as follows on December31, 2015:CostFairValue10,000 shares of Gant, Common$185,000$195,500600 shares of Werth Stores, Common27,55025,500$212,550$221,0008
InstructionsPrepare the general journal entries for Korman Company for:(a)the 2014 adjusting entry. (8 points)(b)the sale of the Thomas Corp. stock. (12 points)(c)the purchase of the Werth Stores' stock. (8 points)(d)the 2015 adjusting entry. (8 points)9
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Term
Fall
Professor
WILKINS
Tags
investee, Interest Receivable
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Accounting
The document you are viewing contains questions related to this textbook.
Chapter 15 / Exercise PE15-2B
Accounting
Reeve/Warren
Expert Verified

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