Explanation Contract: Contract is an agreement among two parties or more parties which includes enforceable obligations and rights. A contract can be “written oral or implied” by ordinary business practices. Compute the amount of contract costs: Particulars 2019 2020 Percent completed 20% 40% Estimated costs to complete $4,500,000 $4,800,000 Gross profit recognized $300,000 $720,000 Revenue to date ( Percent

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN: 9781337788281

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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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…

Question

Chapter 17, Problem 9MC

To determine

Compute the amount contract costs incurred during the year ended December 31, 2020.

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Chapter 17 Solutions

Intermediate Accounting: Reporting And Analysis

Ch. 17 - Prob. 1GI Ch. 17 - Prob. 2GI Ch. 17 - When a company recognizes revenue during a period,...Ch. 17 - Prob. 4GI Ch. 17 - Prob. 5GI Ch. 17 - What is the proper accounting for a wholly...Ch. 17 - If a seller enters into more than one contract...Ch. 17 - Prob. 8GI Ch. 17 - Prob. 9GI Ch. 17 - Prob. 10GI

Ch. 17 - Prob. 11GI Ch. 17 - Prob. 12GI Ch. 17 - Prob. 13GI Ch. 17 - Prob. 14GI Ch. 17 - Prob. 15GI Ch. 17 - Prob. 16GI Ch. 17 - If the standalone selling price of a good or...Ch. 17 - Prob. 18GI Ch. 17 - Prob. 19GI Ch. 17 - If the sellers performance creates on asset (e.g.,...Ch. 17 - Describe input and output methods used to measure...Ch. 17 - Prob. 22GI Ch. 17 - Prob. 23GI Ch. 17 - Prob. 24GI Ch. 17 - Prob. 25GI Ch. 17 - A company should recognize revenue when a. the...Ch. 17 - A contract between one or more parties creates: a....Ch. 17 - Morgan Company and its customer agree to modify...Ch. 17 - Chlorine Corp. has a contract to deliver pool...Ch. 17 - Prob. 5MC Ch. 17 - Prob. 6MC Ch. 17 - In accounting for a long-term construction...Ch. 17 - Prob. 9MC Ch. 17 - Prob. 10MC Ch. 17 - CustomTee Inc. contracts with various customers to...Ch. 17 - Yankee Corp. agrees to provide Albany Company 24...Ch. 17 - Prob. 3RE Ch. 17 - Prob. 4RE Ch. 17 - LongDrive sells a specialized golf club that has...Ch. 17 - Prob. 6RE Ch. 17 - VolleyElite runs a volleyball program consisting...Ch. 17 - Enterprise Solutions Inc. licenses its...Ch. 17 - Prob. 9RE Ch. 17 - Magical Memories sells Florida theme park vacation...Ch. 17 - Prob. 11RE Ch. 17 - Robotics Inc. contracts with a customer to build a...Ch. 17 - CoolShoes sells its elite tennis shoes to sports...Ch. 17 - Using the information in RE17-13, what journal...Ch. 17 - GameDay sells recreational vehicles along with...Ch. 17 - Prob. 16RE Ch. 17 - Using the information provided in RE17-16, prepare...Ch. 17 - Prob. 18RE Ch. 17 - Prob. 19RE Ch. 17 - Company enters into a contract with Dearborn Inc....Ch. 17 - Consider each of the following scenarios: a. A...Ch. 17 - On August 1, 2019, Aiken Corp. enters into a...Ch. 17 - On January 1, 2019, Spring Fashions Inc. enters...Ch. 17 - On January 1, 2019, Loud Company enters into a...Ch. 17 - Assume the same facts as in El7-5. On July 1,...Ch. 17 - Assume the same facts as in E17-5 and ignore...Ch. 17 - Prob. 8E Ch. 17 - GrillMaster Inc. sells an industry-leading line of...Ch. 17 - WaterWorld Inc. operates an aquarium and water...Ch. 17 - Prob. 11E Ch. 17 - Jonas Consulting enters into a contract to provide...Ch. 17 - On March 1, 2019, Elkhart enters into a new...Ch. 17 - On January 5, 2019, ShoeKing Corp. sells for cash...Ch. 17 - On January 1, 2019, Piper Company entered into an...Ch. 17 - On January 1, 2019, Fulton Inc. enters into a...Ch. 17 - Prob. 17E Ch. 17 - On December 1, 2019, AwakcAllNight Inc. sells...Ch. 17 - Rix Company sells home appliances and provides...Ch. 17 - Assume the same facts as in E17-19, except that...Ch. 17 - Crazy Computer Store sells a back-to-school bundle...Ch. 17 - Each of the following is an independent situation...Ch. 17 - Prob. 23E Ch. 17 - Prob. 24E Ch. 17 - Koolman Construction Company began work on a...Ch. 17 - Prob. 26E Ch. 17 - Each of the following independent situations...Ch. 17 - JustKitchens Inc. provides services to restaurants...Ch. 17 - On January 1, 2019, ForeRunner Inc. enters into a...Ch. 17 - January 2, 2019, TI enters into a contract with...Ch. 17 - Prob. 5P Ch. 17 - Prob. 6P Ch. 17 - Fender Construction Company receives a contract to...Ch. 17 - SoccerHawk Merchandise Inc. enters into a 6-month...Ch. 17 - Prob. 9P Ch. 17 - Prob. 10P Ch. 17 - Blackmon Company provides locator services to the...Ch. 17 - Prior to ASU 2014-09 changing the principles...Ch. 17 - The first step in the revenue recognition process...Ch. 17 - Prob. 3C Ch. 17 - One of the more difficult issues that companies...Ch. 17 - Prob. 5C Ch. 17 - On October 1, 2019, Grahams WeedFeed Inc. signs a...Ch. 17 - On January 1, 2019, Mopps Corp. agrees to provide...Ch. 17 - Prob. 8C Ch. 17 - Revenue for a company is recognized for accounting...Ch. 17 - Prob. 10C

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Compute the amount contract costs incurred during the year ended December 31, 2020.

Solution Summary: The author explains that a contract is an agreement between two parties or more parties which includes enforceable obligations and rights.

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Compute the amount contract costs incurred during the year ended December 31, 2020.

Chapter 17 Solutions