general journal adjusting entry on December 31, 2021

Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…

A: Step 1: 1. Compute the amount at which the cost of the building should be recorded as follows:

Q: Bramble Construction Company began work on a $415,000 construction contract in 2020. During 2020,…

A: Under construction process, the revenue or loss can be calculated on the basis of percentage of work…

Q: Which of the following statements is true for real rental property that has been depreciated using…

A: Which of the following statements is true for real rental property that has been depreciated using…

Q: On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of…

A: The construction contract is a long-term contract because the work generally takes more than a year…

Q: On December 4, 2019 Charie purchased office equipment for 400,000 , terms 2/10,n/15 , inclusive of a…

A: As per Indian Accounting Standard 16 , Property , Plant & Equipment, Initially Property , Plant…

Q: A Company began a construction project on a building for P3,000,000. The project was completed…

A: The term "Construction in Progress" (CIP) refers to an accounting account used to track the costs…

Q: Braxton Technologies, Incorporated, constructed a conveyor for A&G Warehousers that was completed…

A: One of the main costs shown in the income statement is interest expense. A business needs to finance…

Q: Marigold Cosmetics Co. purchased machinery on December 31, 2019, paying $53,800 down and agreeing to…

A: Given information, Marigold purchased Machinery on Dec. 31, 2019 Down Payment = $ 53,800 Balance…

Q: rofit or loss contract m

A: Contract price402000Cost incurred in 2020252000Estimated additional cost to complete162405Total cost…

Q: Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020,…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Sandhill Construction Company began work on a $402,000 construction contract in 2020. During 2020,…

A: Percentage of completion method is the method used for accounting of constructing company in which…

Q: Skysong Cosmetics Co. purchased machinery on December 31, 2019, paying $52,900 down and agreeing to…

A: carrying value: Carrying value=$56,000*3.16987(PVIFA of 10% for 4 years)…

Q: HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During…

A: Under completed contract method, Revenue will be recorded when contract is completed. Loss will be…

Q: Baland Company purchased a building for $218,000 that had an estimated residual value of $8,000 and…

A: Part 1:

Q: As the recently appointed auditor for Cheyenne Corporation, you have been asked to examine selected…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020,…

A: Under construction process, the revenue or loss can be calculated on the basis of percentage of work…

Q: Kling Company was organized in late 2019 and began operations On January 2, 2020. Prior to  the…

A: Expenses refer to the costs incurred by the entity over a specific period of time as a consideration…

Q: additional costs to complete the project total $159, 650. Prepare Oriole's journal entry to record…

A: The percentage-of-completion method recognizes revenue and expenses based on the proportion of work…

Q: How much accretion expense will the company record in its income statement for the 2021 fiscal year…

A: Asset retirement is the process of retiring or decommissioning a long-lasting asset, like a…

Q: User In February 2024, Cullumber Corp, began the construction of a 10-storey building. The…

A: The objective of the question is to calculate the avoidable borrowing costs for Cullumber Corp for…

Q: Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and…

A: Percentage of completion method used for construction accounting in which revenue and expenses…

Q: Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending…

A: Depreciation can be referred to as a decline in the value of assets over the period of its useful…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.