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  • Recognition of Profit and Balance Sheet Presentation Percentage PDF

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    Anbu jaromia
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    Hewitt Construction Company obtained a contract in February 2010 to build an athletic stadium for $5.4 million. The contract stipulated the project should be completed by September 2012, with $15,000 penalties for each week overdue. The project finished 6 weeks late. The document provides data on the construction period and instructions to calculate estimated gross profit for 2010-2012 using percentage-of-completion, and prepare a partial balance sheet for December 31, 2011 showing receivables and inventory accounts.

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    Hewitt Construction Company obtained a contract in February 2010 to build an athletic stadium for $5.4 million. The contract stipulated the project should be completed by September 2012, with $15,000 penalties for each week overdue. The project finished 6 weeks late. The document provides data on the construction period and instructions to calculate estimated gross profit for 2010-2012 using percentage-of-completion, and prepare a partial balance sheet for December 31, 2011 showing receivables and inventory accounts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    26 views1 page

    Recognition of Profit and Balance Sheet Presentation Percentage PDF

    Uploaded by

    Anbu jaromia
    Hewitt Construction Company obtained a contract in February 2010 to build an athletic stadium for $5.4 million. The contract stipulated the project should be completed by September 2012, with $15,000 penalties for each week overdue. The project finished 6 weeks late. The document provides data on the construction period and instructions to calculate estimated gross profit for 2010-2012 using percentage-of-completion, and prepare a partial balance sheet for December 31, 2011 showing receivables and inventory accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Recognition of Profit and Balance Sheet Presentation

    Percentage
    Recognition of Profit and Balance Sheet Presentation, Percentage-of-Completion On
    February1, 2010, Hewitt Construction Company obtained a contract to build an athletic stadium.
    The stadium was to be built at a total cost of $5,400,000 and was scheduled for completion by
    September 1, 2012. One clause of the contract stated that Hewitt was to deduct $15,000 from
    the $6,600,000 billing price for each week that completion was delayed. Completion was
    delayed 6 weeks, which resulted in a $90,000 penalty Below are the data pertaining to the
    constructions period.
    Instructions
    (a) Using the percentage-of-completion method, compute the estimated gross profit recognized
    in the years 2010–2012.(b) Prepare a partial balance sheet for December 31, 2011, showing the
    balances in the receivable and inventoryaccounts.
    View Solution:
    Recognition of Profit and Balance Sheet Presentation Percentage
    SOLUTION-- http://accountinginn.online/downloads/recognition-of-profit-and-balance-sheet-
    presentation-percentage/

    For Solutions Visit accountinginn.online


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