Revenue recognition over time and at a point in time under ASC Topic 606 (LO3-4) MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows:
20X1 20X2
Costs incurred during the year $290,000 $150,000
Estimated additional cost to complete 145,000 —
Billings during the year 260,000 265,000
Cash collections during the year 240,000 285,000
Required:
1. Record the preceding transactions in MSK’s books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation has been satisfied.
2. Record the preceding transactions in MSK’s books assuming it recognizes revenue at a point in time when control of the completed factory is transferred to the customer at the end of the project.

Answers

Answer 1

Answer:

MSK Construction Company

a) Journal Entries:

Debit Contract Cost $290,000

Credit Cash Account $290,000

To record the cost of the contract incurred for the 1st year.

Debit Accounts Receivable $260,000

Debit Unbilled Contract $90,000

Credit Contract Revenue $350,000

To record the contract revenue  for the first year.

Debit Cash Account $240,000

Credit Accounts Receivable $240,000

To record the receipt of cash for the first year.

Debit Contract Cost $150,000

Credit Cash Account $150,000

To record the cost of the contract incurred for the 2nd year.

Debit Accounts Receivable $265,000

Credit Contract Revenue $175,000

Credit Unbilled Contract $90,000

To record the contract revenue for the 2nd year.

Debit Cash Account $265,000

Credit Accounts Receivable $265,000

To record the receipt of cash for the 2nd year.

Explanation:

Contract price = $525,000

Contract data:

                                                                  20X1           20X2

Costs incurred during the year          $290,000     $150,000

Estimated additional cost to complete  145,000        —

Billings during the year                         260,000      265,000

Cash collections during the year         240,000       285,000

Revenue Recognition over time based on costs:

Total estimated cost = $435,000 ($290,000 + 145,000)

Revenue in the 1st year = ($290,000/435,000 * $525,000) = $350,000

Revenue in the 2nd year = $175,000 ($525,000 - $350,000)

Revenue Recognition at point in time when control is transferred:

Revenue in the 1st year = $0

Revenue in the 2nd year = $525,000


Related Questions

Which of the following is the "riskiest" investment?

a. а CD
b. a blue-chip stock
c. a growth stock
d. a corporate bond

Answers

Answer:

d

Explanation:

The owner of a small convenience store observed that almost all customers paid with credit cards regardless of whether they had cash available, resulting in significant processing charges for the store. The owner began to add a fifty-cent charge to credit card purchases under two dollars, and during the following month, virtually all customers used cash for small purchases while continuing to use credit cards for larger purchases. Nonetheless, during the month after the charge was instated, the average dollar amount of each cash transaction was almost identical to the average dollar amount of each credit card transaction.
The information in the passage most strongly supports which of the following?
A. The average dollar amount spent by customers who did not have cash available was higher after the charge was instated than it had been beforehand.
B. After the charge was instated, customers who used cash for purchases totaling two dollars or more spent more, on average, than customers who used credit cards for these purchases.
C. The average dollar amount spent in each cash transaction at the convenience store was lower after the charge was instated than beforehand.
D. A significant majority of purchases made at the convenience store during the month after the charge was instated were made using credit cards.
E. Prior to the charge, the average amount spent on credit card transactions was higher than the average amount spent on cash transactions.

Answers

Answer:

B. After the charge was instated, customers who used cash for purchases totaling two dollars or more spent more, on average, than customers who used credit cards for these purchases.

Explanation:

Since the average transaction remained almost unchanged, that means that customers who used to spend $2 or less are now spending more on average. Assuming that customers that purchase higher amounts didn't change their habits, the only way that the cash purchases equal credit card purchases is that people paying in cash buy more things.

E.g. there are 20 transactions worth more than $2 which are paid using a credit card, so the average transaction is more than $2. In order for cash purchase to have a similar mean, the some transactions will be less than $2 but other transactions must be higher in order to increase the mean of cash purchases: 15 cash transactions worth $1 and 5 cash transactions worth $6, mean cash transaction = $2.25.

FIRST ANSWER GETS BRAINLIEST!
(If you answer with nonsense, brainliest will go to the other person)
Personal & Family Finance


You have closed an account due to fraudulent activity. What else should you do to BEST protect yourself?


A) Change all of your passwords and PINs.


B) Do not put anything about the closing of the account in writing.


C) Put a permanent credit freeze on your credit report.

Answers

Answer:

C

Explanation:

Answer:

A) Change all your passwords and pins

Explanation:

when you do this, you better secure your information to keep unwanted hackers out, if you change your passwords and pins, hackers will need to figure out what the new codes are

the answer is not C) put a perm freeze on your account- becuase though it does stop anyone from using your information to make new accounts, it also stops YOU from making any new accounts as well, a freeze can be a temporary fix -i.e. to buy you more time to secure things and figure out whats going on-, but not perminant

hpe this helps you out, sorry if im a little late on answering

(a) Which one of the following which is an example of a non-financial objective for an
entrepreneur starting a new business?
Select one answer:
A Survival
B Profit
C Market share
D Independence

Answers

Answer:

D Independence

Explanation:

Entrepreneurs have more control over their lives. They choose what kind of business they want, where to locate it, and how to run it. Entrepreneurs are their bosses. They control their work-life balance a have greater independence than employees.

Many individuals start their businesses to regain control over their lives. The desire to have a more convenient and flexible work schedule and pursue one's goals is a big motivation for many entrepreneurs.

James Smith recorded the following transactions during the month of April. Apr. 3 Cash 1,400 Service Revenue 1,400 16 Rent Expense 400 Cash 400 20 Salaries and Wages Expense 150 Cash 150 Post these entries to the Cash account of the general ledger to determine the ending balance in cash. The beginning balance in cash on April 1 was $1,900. (Post entries in the order of journal entries presented in the question.) Cash choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit balance choose a transaction date enter a credit balance.

Answers

Answer and Explanation:

The computation of the ending cash balance with the help of the cash ledger is presented below:

Cash account

Date   Particulars           Amount            Date    Particulars         AMount

April 1   Beg. Balance    $1,900             April 16  Rent expense   $400

April 3  Service revenue $1,400           April 20 Salaries & wages

                                                                             expense              $150

April 30 Ending balance $2,750

On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $673,618.61. The bonds carry a stated rate of interest of 10%, were purchased to yield 11%, pay interest semiannually on April 30 and October 31, were purchased to be held to maturity, and are due October 31, 2022. On November 1, 2019, in contemplation of a major acquisition, the bonds were sold for $700,000. Reid is on a fiscal year accounting period ending October 31 and uses the effective interest method.
Required:
Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2016, and October 31, 2016, and the sale of the bonds.
Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2016, and October 31, 2016, and the sale of the bonds. Additional Instructions
PAGE 1
GENERAL JOURNAL
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11

Answers

Answer and Explanation:

The journal entries are shown below:

On Nov 1

Investment in held to maturity debt securities Dr $673,618.61

        To Cash $673,618.61

(Being cash paid is recorded)

On April 30

Cash  $35,000

Investment in held to maturity debt securities Dr $2,049.02

           To interest revenue  $37,049.02

(Being interest revenue is recorded)

On Oct 31

Cash  $35,000

Investment in held to maturity debt securities Dr $2,161.72

           To interest revenue  $37,161.72

(Being interest revenue is recorded)

On 1 Nov

Cash Dr $700,000

     To Investment in held to maturity debt securities $677,829.35

      To Gain on sale of securities $22,170.65

(Being cash receipt is recorded)

Working note

Date           Cash           Interest    Investment in debt  Debt carrying value

                   Debit          Credit      Debit            

Nov 1                                                                                  $673,618.61

April 30      $35,000     $37,049.02   $2,049.02            $675,667.63

                                ($673,618.61 × 11% ÷ 2)

Oct 30        $35,000    $37,161.72        $2,161.72           $677,829.35

                               ($675,667.63 × 11% ÷ 2)

21. A small object is placed at right angles to the axis of a fixed concave
mirror so as to form (i) a real (ii) a virtual image, twice as long as the
object. if the radius of curvature of the mirror is 40cm, what is the
distance between the two images?
Ans: 60cm
om
chat and in ito​

Answers

Answer: 60 cm

Explanation:

Given that:

Radius of curvature (R) = 40 cm

Radius of curvature is 2 tines the Focal length:

Focal length (f) = 40/2 = 20

Object distance = u

Image distance = v

Image (v) = 2u

1/v + 1/u = 1 /f

1/2u + 1/u = 1/20

(1 + 2) /2u = 1/20

3 / 2u = 1/20

2u = 60

u = 60/2

u = 30 cm

v = 2u

v = 2(30)

v = 60 cm

As a business consultant, write a report to the chief executive of your own national airline discussing the process of outsourcing and recommending whether
all non-core activities should be outsourced

Answers

Answer:

0 min

Explanation:

sanaollbisbeisnns

Which tasks are commonly done by employees in the Energy cluster? Check all that apply.
installing equipment
performing inspections
interpreting technical plans
manufacturing gauges
designing systems
following schedules
gathering information

PLEASE HURRY TIMED TEST I WILL GIVE 20 POINTS

Answers

Installing equipment
Manufacturing gauges
And designing systems.
Hope this helped xxxx

Answer:

a, d, and e

Explanation:

refers to the buying and selling of products and services
through an electronic medium such as the internet

O E-commerce
O Money orders
O Telegraphic money transfers
M-money​

Answers

Explanation:

E commerce refers to the buying and selling of products and services through an electronic medium such as the internet.

Sue wants to work as a chemical engineer for either a large corporation or the government. What would you advise her to
do while she is earning her bachelor's degree to gain some real-world experience in the field of chemical engineering while still earning
college credits ?

a) Apply for a cooperative education experience, through her university, at a company or an agency that will provide her real work
experience in her field of study

b) Study hard and wait until she earns her degree to get experience

c) Take a job on campus working in the office typing papers for engineering professors

d) Take a part-time job working nights at a pharmacy

Answers

Answer:

A

Explanation: The most common reason tbh.

Answer: A

And just trust

Mary is interested in investing in the stock market, but having studied the Great Depression in school, she is afraid she could lose all of her money. She reads through the finance pages of the newspaper and sees that unemployment has dropped to the lowest level it has been in the past ten years, new businesses are opening, housing sales are up because interest rates are level, and the national debt is decreasing. If the economy is her only concern about buying stock, should she buy stock?
A) ​The level of unemployment, the rise in new business starts, the increase in housing sales, and the decrease in national debt indicate that the economy is growing so it would be a good time to buy stock.B) ​In spite of all of the positive indicators, it is never a good time to buy stock.C) ​The stock market works independent of unemployment, business starts, housing sales, and the level of the national debt so these things will not influence the rise or fall of the market.D) ​Mary should not base her decision to buy stock on the factors indicated, she should base it solely on the consumer price index.

Answers

Answer:

A) ​The level of unemployment, the rise in new business starts, the increase in housing sales, and the decrease in national debt indicate that the economy is growing so it would be a good time to buy stock.

Explanation:

Mary should definitely buy stock. All the economic indicators that are doing well according to the financial paper are what is known as leading indicators: indicators whose tendency more or less predicts the tendency of the general economy in the short-term.

In other words, all the signs are indicating that the economy will continue to be strong for a good amount of time, time that Mary can use not only to buy stock, but also to reap the benefits from the stock.

Ricardo is the human resources manager at Shafewn, an e-commerce site. He confirms the completion of the probationary periods of management trainees in the company only after each of them submits a report on the company's marketing strategies. In the reports, they are asked to evaluate the company's existing marketing strategies and suggest better ones. Ricardo shares the relevant and useful information from these reports with the marketing team of Shafewn. In the context of managerial roles, which of the following roles does Ricardo illustrate in this scenario?
A) The leader role.
B) The liaison role.
C) The disseminator role.
D) The monitor role.

Answers

Answer:

C) The disseminator role.

Explanation:

The disseminator role is the role where the communication of the information i.e. useful is communication to the team mate and the colleagues. Here the person is responsible for communicating the information with respect to the organization and its goals

So as per the given situation since Richardo shares the useful information i.e. relevant so this represents that Richardo having a disseminator role

Therefore the option c is corredct

what is nbetter fender gibson or danelectro guitars. (in your opinion). I ALREADY HAVE MINE DANELECTRO ALL THE WAY.

Answers

Answer:

Danelectro Guitars

Explanation:

They are just cool.

Read each question and choose the best answer. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."—Robert G. Allen, financial writer This quotation reflects what principle of investing? A. Higher risk usually offers higher potential return. B. Higher risk usually offers lower potential return. C. Greater liquidity usually offers higher potential return. D. Greater liquidity usually offers lower potential return.

Answers

Answer:

A.

Explanation:

This quote reflects the principle of investing that Higher risk usually offers a higher potential return. Savings accounts are probably the safest investments that an individual can make, where they hold their money in this account and the bank ensures this account while also providing interest on the amount held. This interest that is gained is extremely small and usually wouldn't even cover the average annual inflation rate. The average interest on these accounts is between 0.01% to 0.35% APY. Riskier investments have a much higher potential return from 7% APY to potentially above 100% APY.

According to the video, what tasks commonly are performed by Cashiers? Check all that apply.

creating advertisements
receiving money
totaling bills
giving receipts
delivering products to customers’ homes
weighing produce and bulk food

Answers

Answer:

receiving money

totaling bills

giving receipts

Explanation:

Cashiers are workers stationed at cash registers. Their role revolves around receiving money, issuing receipts,  and disbursement of correct change as required. Cashiers work in many institutions, especially in the retail industry.

Cashiers' main task is to collect payment from customers. They have to be accurate when issuing receipts and giving back change. Cashiers have to reconcile their register at the end of the day.

Answer:

bcd

Explanation:

I have teechip im 14 trying to make money how do i make people buy my clothing and how do i promote it without money?

Answers

Answer:

you can advertise it through social media jazz your creativity too it will attract more attention if it is unique

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
a. Companies that produce small quantities of many different products.
b. A company that pulverizes wood into pulp to manufacture carboard.
c. A company that manufactures thousands of identical files.
d. Companies that produce large numbers of identical products.
e. A computer repair service that makes service calls to homes.
f. A company that assembles electronic parts and software to manufacture millions of portable media players.
g. A textbook publisher that produces copies of a particular book in batches.
h. A company that bottles milk into one-gallon containers.
i. A company that makes large quantities of one type of tankless hot water heaters.
j. A governmental agency that takes bids for specific items it utilizes where each item requires a separate bid.

Answers

Answer:

Explanation:

Process costing can be regarded as a methodology in accounting that involves attributing cost to unit of production in different firms especially firm that are producing product that are homogeneous.

Job order costing can be regarded as

a system that occur when an order of purchase is made by consumer, it helps in way that the price of individual product is affordable by consumer.

a.Companies that produce small quantities of many different products.

(Job order costing)

b.A company that pulverizes wood into pulp to manufacture carboard.

(Process costing)

c.A company that manufactures thousands of identical files.

(Process costing)

d.Companies that produce large numbers of identical products.

(Process costing)

e.A computer repair service that makes service calls to homes.

(Job order costing)

f.A company that assembles electronic parts and software to manufacture

(Process costing)

millions of portable media players.

g.A textbook publisher that produces copies of a particular book in batches.

(Job order costing)

h.A company that bottles milk into one-gallon containers.

(Process costing)

i.A company that makes large quantities of one type of tankless hot water heaters.

(Process costing)

j.A governmental agency that takes bids for specific items it utilizes where each

(Job order costing)

.

While planning a new product launch, Cassandra knew that the art department was ready to work on the promotional pieces right away. But they are not able to start until the strategy group established the price point and the purchasing group obtained the paper needed to make the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the strategy group. This was expected a week from today. The purchasing group indicated the paper could be obtained locally the same day it was requested. Based on this information and assuming things go according to plan, when will the art department be able to begin work on the promotional pieces?
A. 1 weekB. 1 monthC. 1 dayD. 2 weeks

Answers

Answer:

A. 1 week

Explanation:

This is true due to the fact that, Cassandra knew it would take about 1 week to establish the price point in the new product which she is planning to launch.

For the extra week it would have taken to get the paper could not hold again due to the fact that, it was already established that, it would take same day to get same paper rather than waiting for the paper to get to the strategy group in one week.

A(n) _____ is the learned ability to do something. A(n) _____ is a natural talent or ability to excel at something. A(n) _____ is a quality or characteristic.


A. aptitude, trait, skill

B. aptitude, skill, trait

C. skill, trait, aptitude

D. skill, aptitude, trait

Answers

Answer: D. skill, aptitude, trait

Explanation:

A skill is the learned ability to do something which is why when a person is being trained they say the person is acquiring new skills.

Aptitude on the other hand is the natural born talent that a person has that enables them to excel at something.

A trait is simply a quality or characteristic that a person possesses.

Answer: D. skill, aptitude, trait

Explanation: took the quiz.

1: List three policy making groups of the Federal Reserve?
2: which banks are members of the fed?
3: the fed is owned by?

Answers

Answer:1- the board of governors, the federal reserve bank also know

as ( Reserve bank), And the federal open market committee

2- Approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System.

3- The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank.

Explanation:

idk answer might Be wrong

How does Ana spend her time in seedfolks?

Answers

Answer:

B

Explanation:

Got it right on edg 2020

1. The point at which quantity demanded and quantity supplied are equal:______
2. The financial and opportunity costs con- sumers pay in searching for a good or service:_____
3. A system of allocating scarce goods and services by criteria other than price:_______
4. A sudden drop in the supply of a good:_______
5. Any situation in which quantity supplied exceeds quantity demanded:________
6. Any situation in which quantity demanded exceeds quantity supplied:________
7. A government-mandated minimum price that must be paid for a good or service:_________

Answers

Answer:

1. Market Equilibrium, 2. Interest Rate, 3. Rationing, 4. Supply Shock, 5. Excess Supply, 6. Excess Demand, 7. Price Floor

Explanation:

1. The point at which quantity demanded and quantity supplied are equal: Market Equilibrium

2. The financial and opportunity costs consumers pay in searching for a good or service : Interest Rate

3. A system of allocating scarce goods and services by criteria other than price: Rationing

4.  A sudden drop in the supply of a good: Supply (decrease - leftward shift) shock

5. Any situation in which quantity supplied exceeds quantity demanded: Excess Supply  

6. Any situation in which quantity demanded exceeds quantity supplied: Excess Demand

7. A government-mandated minimum price that must be paid for a good or service: Price Floor (Minimum Support Price)







Which careers require a person to find independence in working alone?

Answers

Answer:

Visual Arts??

Explanation:

When they work on every visual art project, the artists want to be isolated and away from anyone. Few examples of visual artwork are architecture, craft, painting, and photography, and a lot more can be applied to this category. In any situation, though the artist likes solitude and being alone since it means that they are closer to nature, and can therefore rely more on their work that can be ruined by even the slightest flaw.

Craig was scheduled to attend a meeting about a new project, but the flu kept him at home. What can Craig do to catch up on the outcome of the meeting once he has recovered?

Answers

Answer:

Read the minutes from the meeting

Explanation:

At every formal meeting, there someone assigned to take minutes of the proceedings. The minutes detail the discussion and resolutions made at the meeting.

Once Craig has recovered, he should make efforts to get a copy of the minutes. By reading the minutes, Craig will be up to speed with the outcome of the meetings.

Price elasticity of demand is a measure of how sensitive, or responsive,
are to change in price. *
A) Producers
B) Bankers
C) Consumers
D) Regulators

Answers

Answer:

hey.. follow me.. follow me.. follow me...

Explanation:

follow me follow me..

True or False? Conditional formatting in Excel can make it difficult to identify data that satisfy certain conditions in a data set.

Answers

Answer:

False

Explanation:

Conditional formatting is a special feature in excel spreadsheets that allow the application of specific modification to cells that meet certain criteria.
It is most commonly used to highlight color, emphasize text or heading, and differentiate data from information stored in a spreadsheet.

I will give the right answer brainliest. Choose the option that best matches the description given.

_____ try to influence legislation and help human services organizations to achieve their goals.

1. Legislative aides
2. Lobbyists
3. Lawyers

Answers

Answer:

2. Lobbyists

Explanation:

A lobbyist is any individual or a group of individuals who communicates directly or indirectly with others to influence or attempt to influence the drafting, debate, vote, approval, or introduction of some legislation.  In this context, a lobbyist may be a legislator trying to influence fellow legislators or any person who communicates with a legislator to advocate and promote the desires of human services organizations.

Answer:

Lobbyists

Explanation:

2.
What is selling? How can you apply this in your real life as a student?

Answers

Selling is when someone buys product from you, it can affect you as a student because you’re earning money by selling items.

an online survey or _____?​

Answers

Answer:

Study

Explanation:

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The tree ____ by lighting.Fill in the gap with proper grammar. When asked about favorite Thanksgiving leftovers, 9% of the people said turkey and 7100 7 100 said mashed potatoes. Which food is more popular? How do you know? Four siblings have a dog walking business. The table shows the hours worked by sibling. sibling earns $25.50 per hour and the total number of hours worked is represented by 10h + 15, where h represents the number of hours Michael worked. Sibiling Hours Worked Martin 2. 5h +3 Emillo 4(h 2) Michael Mario 31 What was the total amount the siblings earned? In the Diagram in the show your work area, what is the value of x?Show Your WorkSomeone help please write an inequality to represent: ten is no more then four then a number I need help with this question pls ____penicillin kills bacteria was discovered in 1928 by Alexander FlemingA. What B. ThatC. WhoD. WhichE. When Which items are placed at the end of adocumentO HeaderO FooterO Foot NoteO End note How many atoms are in 1.4 mol of phosphorus trifluoride (PF3)? what is work?(theoretically) Crane Company issues $255,000, 20-year, 6% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) He1p p1s The reader can infer that pumpkins are widely used at a particular time of year. Which sentence from the text BEST supports this inference? A. "Pumpkins represent the fall season." B. "You might wonder why pumpkins are appearing on your neighbor's proches." C. "Some people like to roast and salt the pumpkin seeds." D. "Historians say that jack-o-lanterns originated either in Scotland or Ireland and were used as actual lanterns." A 50.0 mL solution of Ba(OH)2 is combined with a 150 mL solution of 0.20 M HCl. If the resulting solution has a hydroxide ion concentration of 0.12 M, what was the concentration of Ba(OH)2 in the original solution? 1. How many atoms are in 0.25 moles of carbon?2. How many atoms are in 12.3 grams of sodium?3. How many grams are there in 0.52 moles of boron?4. How many grams are there in 2.0 moles of HCl?5. How many moles are in 3.4 grams of HBr? 6. How many grams are there in 4.5x10^10 atoms of NaCl?7. How many atoms are there in 45.1 grams of MgO? If your nominal rate of return is 14.38 percent and your real rate of return is 4.97 percent, what is the inflation rate Please help me youll get brainlest!4/5 write 6.085 in word form 12.The leukocytes involved in innate immunity are of twogeneral types, each with a different action against pathogens:Name them if I ride my bike to school instead of walking, then I will get there faster what is the dependent variable In the 19th century, which of these river was an important route for transporting goods from northern states to southern states? A. Rio Grande B. Mississippi River C. Columbia River D. Hudson River