The amount of working capital immediately after payment is:
Q: A construction company entered into a fixed-price contract to build an office building for $38…
A: The percentage-of-completion method is an accounting method used to recognize revenue and expenses…
Q: Sales On Account Account $85,000 $75,500 $69,870 $80,030 $63,010 $520,000 $640,000 $760,000 $680,000…
A: As per rule, allowed to answer first three subparts and post the remaining in the next submission.…
Q: Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at January…
A: Non-wage remuneration given to employees in addition to their regular income or wages is known as…
Q: mpany borrowed $1,100,000 on March 1 on a 5 -year, 10% note to help finance construction of the…
A: Usually, the weighted average cost of the company's outstanding borrowings is used to compute…
Q: Ayala Homes is a construction company who uses the percentage of completion method in accounting for…
A: A company has to recognize revenue and expenses in the year they are earned and incurred,…
Q: Windsor Company is constructing a building Construction began on February 1 and was completed on…
A: The question is based on the concept of Borrowing Cost Accounting.Borrowing costs that are directly…
Q: A manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A: Lets understand the basics. Product cost is a cost incur for producing goods or providing services.…
Q: In the year 2020, Olive Construction Corporation began its work on a contract for $3,700,000. Other…
A: Revenues and profits are reported on the basis of works completed as per percentage of Completion…
Q: Cullumber Ltd. is constructing a building. Construction began on February 1 and was completed on…
A: Borrowing cost capitalization is the borrowing cost that is added to the cost of qualifying assets…
Q: A manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A: Period costs are those costs which are not directly related to the production process. These are not…
Q: uniper Design Limited of Manchester, England, provides design services to residential developers.…
A: Residual income is the amount of money a company earns above and beyond what it needs to make to…
Q: ABC Company obtained a loan of $100,000 at 10% annual interest rate on January 1, 2022. The loan was…
A: When a business borrows money to finance an eligible asset, such as property, plant, and equipment…
Q: Noma’s Hair Salon’s monthly current fixed and total asset requirements schedule for the previous…
A: Conservative Financing strategy It is strategy of financing the working capital with less or no…
Q: A construction company entered into a fixed-price contract to build an office building for $26…
A: There are several categories for construction businesses according to the kinds of projects they…
Q: The following information relates to Arlon Manufacturers which will commence business on 01 January…
A: Let's answer the question asked with explanations for each point:Question: What is the impact of the…
Q: The following are transactions of Corporation R for the month of February 2020. Provide the…
A: It is asked to calculate Net income after tax. So we will prepare trading and profit and loss…
Q: A VAT-registered entity is engaged in the business of construction. For each construction project,…
A: VAT is charged at 12% on the amount received by the clients.
Q: manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A: Prepaid asset refers to an expense which is paid in advance the benefit of which however will be…
Q: The AAA Division has permanent current assets of P50,000 and operating non-current assets of…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Modern Engineering (ME) entered into a contract for 3-year maintenance services with a manufacturing…
A: A Long-term service revenue is completed over more than one year period. The revenue is recorded…
Q: A company constructs a building for its own use. Construction began on January 1 and ended on…
A: Borrowing costs that are directly attributable to the acquisition, construction, and production of…
Q: A company uses the percentage-of-completion method of accounting. In 2020, the company began work a…
A: Construction contracts are made in which two or more parties’ contract for big construction projects…
Q: Madi Con Inc. is a construction company who uses the percentage of completion method in accounting…
A: Percentage of Completion method The purpose of using the percentage of completion method in contract…
Q: Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated…
A: The percentage of completion method is used to account for recognizing the revenue under the…
Q: A construction company entered into a fixed-price contract to build an office building for $48…
A: Using percentage of completion method, the revenue and expenses are recognized on the basis of…
Q: 7 months below, starting from the signing of the contract, bringing the total price of the contract…
A: Calculation:
Q: Zent construction has an contract for $3,700,000. Other details follow: Costs incurred during the…
A: Percentage of completion method was used to account for contsruction contracts where revenues are…
Q: Juniper Design Limited of Manchester, England, provides design services to residential developers.…
A: Residual income:— It is the difference between net operating income and desired minimum return on…
Q: NUBD Division reported a residual income of P200,000 for the year just ended. The division had…
A: Answer - Formula - Residual Income = Operating Income - ( Capital Invested * Target Rate of…
Q: A construction company entered into a fixed-price contract to build an office building for $20…
A: Under completed-contract method total gross profit (loss) is recognized at the last year of the…
Q: Sam Division reported a residual income of P200,000 for the year just ended. The division had…
A: Residual income = Net operating income - invested capital x required rate of return required rate of…
Q: Weighted Average Expenditures Construction loan at 12%, interest paid annually 10-year, 13% loan,…
A: Avoidable cost = If the loan is taken was not expensed on a qualifying asset, then theoretically, an…
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: A cash budget is prepared by the management to determine the possible change in their flow of cash…
Q: A manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A:
Q: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…
A: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…
Q: By the end of this year, the total payroll expenditure of a small engineering consulting firm is…
A: Salary will be increased by 6 % p.a. Future worth will be calculated by discounting the value of…
Q: On January 1, 2018, Sansa Construction entered into a contract amounting to P10,000,000 to construct…
A: Total cost of constructing the building = P10,000,000 Percentage of completion till December 31,…
A company with
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- A company uses the percentage-of-completion method of accounting. In 2020, the company began work a project, which had a contract price of $23,700. Other details follow: 2020 2021 Costs incurred to date $6,000 $18,000 Estimated costs to complete, as of December 31 14,000 -0- Billings to date 11,350 17,460 Collections to date 9,390 16,260 At the end of 2020, what is the inventory/current liability related to the construction of this project? (Very important: if the company reports a current liability, then put a minus sign in front of the amount. If the company reports an inventory, then no plus or minus sign is needed.) (Do not round your answers in any part of the computation.)Please show all the steps and reasoningsNUBD Division reported a residual income of P200,000 for the year just ended. The division had P8,000,000 of invested capital and P1,000,000 of income. On the basis of this information, the required rate of return was: (round-off to 1 decimal places)
- A local manufacturing company estimated the following expenses for the upcoming year: a. Insurance on factory: $100,000 b. Factory security: 1 guard at $20/hour for a 2,000 hour work year . 1 production supervisor at $90,000/year d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year e. Depreciation: $25/machine hour f. Utilities: $7/machine hour The company applies overhead on the basis of machine hours. Required: Build the cost formula Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units • Calculate the expected number of machine hours to be used in the year. o Calculate the estimated total manufacturing overhead cost. o Calculate the applied overhead rate per machine hour. o Calculate the applied overhead per unit of output.Polymer Coating Enterprises has an operating income of $100,000 on revenues of $1,000,000. Average invested assets are $500,000 and the Company has an 8% cost of capital. What is the residual income?Company's total assets and liabilities by the end of April Total Assets (Cash only): $2,787,000 Total Liabilities: $1,863,000 Construction project Contract terms Duration: 4/1 ~ 12/31 Contract amount: $624,000 with the owner $598,000 with the subcontractors including the suppliers Terms of payment: Monthly payment The owner pays the contractor within a month after the contractor bills the owner. The owner holds 5% of each payment to the contractors for retention. The contractor pays the subcontractors within a month after the subcontractors bill the contractor. The contractor holds 5% of each payment to the subcontractors for retention. Information related to revenues and expenses in the project 4/1 Project Start 4/26 The subcontractors billed $54,000 to the contractor. 4/30 The contractor billed $57,000 to the owner. 5/20 The owner paid 95% of the amount that the contractor billed in March to the contractor. 5% was held for retention. 5/20 The contractor paid 95% of the…
- A firm enters into an 8-year contract for materials that cost $90,000 initially and $30,000/yr beginning at the end of the 4th year. The company decides to make a lump sum payment at the end of year 2 to pay off the remainder of the contract. What lump sum is necessary at 8% interest?The following information relates to Arlon Manufacturers which will commence business on 01 January 2024 with R750 000 cash: 1. 2. New machinery and equipment will be purchased on 02 January 2024 for R300 000. A deposit of 20% will be paid immediately. The balance of the debt as well as finance charges of R18 000 will be paid in 12 equal instalments commencing February 2024. Production will commence on 05 January 2024 and 30% of the sales for February's will be manufactured in January. Each month thereafter the production will consist of 70% of the current month's sales and 30% of the following month's sales. 3. Estimated sales at R72 per unit are as follows: 4. January February March April Units 0 8 500 11 000 10 500 Cash sales are expected to comprise 60% of the total sales. A cash discount of 10% will be granted to these customers. The balance of the sales will be on credit. Thirty percent (30%) of the amount owing is expected to be received in the month of the sale and the balance…A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its residual income is P 36,000. What is the company’s return on investment? a. 30% b. 12% c. 18% d. 22%
- Headland Company is constructing a building Construction began on February 1 and was completed on December 31 . Expenditures were $2,076,000 on March 1,$1,224,000 on June 1 and $3,076,600 on December 31. Headland Company borrowed $1,155,090 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%,5-year, $2,376,900 note payable and an 10%,4-year, $3,397,000 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, es. 7.58%.Algor Inc. entered into a $975,000 3-year contract to maintain a client's computer system. At the end of the first year, the costs incurred on the contract were $225,000 and it was estimated that a further $520,000 would be incurred over the remaining years of the contract. What is the amount of profit that can be recognized on this contract for the first year? $196,875 $69.463 $421,875 $294.463A company in the manufacturing sector prepares its account to 31.12 annually. In July 2019, the company completed the construction of its own factory as follows: Land - RM580,000 Legal fees for an agreement to purchase land - RM11,000 Legal fees for an agreement with the building contractor - RM10,000 Consultant's fees and building plan - RM80,000 Stamp duty for the purchase of land - RM9,000 Construction cost - RM1,510,000 Required: Calculate the qualifying building expenditure. Select one: A. RM2,200,000 B. RM1,620,000 C. RM1,590,000 D. RM1,600,000