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 Amount2,000,00020162017Cost$800,000600,000Gross Profit350,000250,000Contract Billings1,000,0001,000,000Moon View uses the percentage-of-completion method to recognize revenueC. 40 What would be the journal entry made in 2016 to record revenue?DebitCreditA. Accounts receivable1,000,000Revenue from Long-term contracts1,000,000B. Accounts receivable1,350,000Gross profit350,000Revenue from Long-term contracts1,000,000C. Construction in progress350,000Cost of construction800,000Revenue from Long-term contracts1,150,000D. Accounts receivable1,000,000Billings in excess of cost350,000Revenue from Long-term contracts1,350,000A.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.

In percentage of completion method, we have to calculate how much percentage work has been completed…

Answered: kindly answer no. 40

Business

Accounting

kindly answer no. 40

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 2P

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