kindly answer no. 40
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 2P
Related questions
Question
kindly answer no. 40
![Moon View Desert Homes constructed a subdivision of upscale homes north of Cave Creek,
Arizona, during 2016 and 2017 under contract with Empire Development. Relevant data are:
Contract Amount
2,000,000
2016
2017
Cost
$
800,000
600,000
Gross Profit
350,000
250,000
Contract Billings
1,000,000
1,000,000
Moon View uses the percentage-of-completion method to recognize revenue
C. 40 What would be the journal entry made in 2016 to record revenue?
Debit
Credit
A. Accounts receivable
1,000,000
Revenue from Long-term contracts
1,000,000
B. Accounts receivable
1,350,000
Gross profit
350,000
Revenue from Long-term contracts
1,000,000
C. Construction in progress
350,000
Cost of construction
800,000
Revenue from Long-term contracts
1,150,000
D. Accounts receivable
1,000,000
Billings in excess of cost
350,000
Revenue from Long-term contracts
1,350,000
A.
41. In its December 31, 2003 balance sheet, Moon View would report:
A. The asset, cost and profits in excess of billings of $150,000.
B. The liability, billings in excess of cost of $200,000.
C. The asset, contract amount in excess of billings of $1,000,000.
D.
The asset, deferred profit of $ 400,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6b6a50-7ddf-4af3-a6e8-fa2e3ba021aa%2Fa51fe1d5-dcd2-461e-8ab1-15f0e552b076%2F3tsbbqu_processed.png&w=3840&q=75)
Transcribed Image Text:Moon View Desert Homes constructed a subdivision of upscale homes north of Cave Creek,
Arizona, during 2016 and 2017 under contract with Empire Development. Relevant data are:
Contract Amount
2,000,000
2016
2017
Cost
$
800,000
600,000
Gross Profit
350,000
250,000
Contract Billings
1,000,000
1,000,000
Moon View uses the percentage-of-completion method to recognize revenue
C. 40 What would be the journal entry made in 2016 to record revenue?
Debit
Credit
A. Accounts receivable
1,000,000
Revenue from Long-term contracts
1,000,000
B. Accounts receivable
1,350,000
Gross profit
350,000
Revenue from Long-term contracts
1,000,000
C. Construction in progress
350,000
Cost of construction
800,000
Revenue from Long-term contracts
1,150,000
D. Accounts receivable
1,000,000
Billings in excess of cost
350,000
Revenue from Long-term contracts
1,350,000
A.
41. In its December 31, 2003 balance sheet, Moon View would report:
A. The asset, cost and profits in excess of billings of $150,000.
B. The liability, billings in excess of cost of $200,000.
C. The asset, contract amount in excess of billings of $1,000,000.
D.
The asset, deferred profit of $ 400,000.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning