For 2001 instalment sales 250000 cost of sales 150000

Info icon This is a preview. Sign up to view the full content.

View Full Document Right Arrow Icon
for 2001: Instalment sales $250,000
Image of page 7
Cost of sales $150,000 Cash collections $100,000 The gross profit on instalment sales realized in and deferred at the end of 2001 should be: Realized -- Deferred See page 267-268 11 CORRECT In 2001, Build Construction Corporation contracted to build a motel. The contract price is $300,000 and the total cost is estimated as $200,000. Over the construction period there has been no change in either the contract price or the estimated total cost. Costs incurred for 2001 and 2002 are $100,000 and $80,000, respectively. How much gross profit should be recognized in 2001
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern