Homework Help is Here – Start Your Trial Now!
Business
Accounting
kindly answer no. 40

kindly answer no. 40

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
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.
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
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS