Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts. Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract. (a) To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method. Given information: All the information related to W Company is provided in the question document.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you demonstrate the accurate method for solving this General accounting question?

What is the annual depreciation expense

I am looking for the correct answer to this general accounting question with appropriate explanations.

Answer 2

Question

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Answer 6

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

Answer 7

Chapter 18, Problem 9CA

To determine

Percentage-of-completion method: It is a method where the incomes and expenses are recorded based on the percentage of the work is completed. This method is used for long term contracts.

Completed contract method: Under this method the revenue is not recognized over the project life but is recognized only upon the completion of the contract.

(a)

To explain: To explain the theoretical justification for W Company’s use of the percentage-of-completion method.

Given information: All the information related to W Company is provided in the question document.

Answer 8

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

Answer 9

To determine

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

Answer 10

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

Answer 11

To determine

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

Answer 12

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Answer 13

To determine

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 18 - Prob. 1Q Ch. 18 - Prob. 2Q Ch. 18 - Prob. 3Q Ch. 18 - Prob. 4Q Ch. 18 - Prob. 5Q Ch. 18 - Prob. 6Q Ch. 18 - Prob. 7Q Ch. 18 - Prob. 9Q Ch. 18 - Prob. 10Q Ch. 18 - Prob. 11Q

Concept explainers

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.

Want to see the full answer?

Chapter 18 Solutions

Concept explainers

(b) To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements. Given information: All the information related to W Company is provided in the question document.

(c) To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion. Given information: All the information related to W Company is provided in the question document.

(d) To discuss: To discuss the effect on earnings per share in the 2nd year. Given information: All the information related to W Company is provided in the question document.

Want to see the full answer?

Chapter 18 Solutions

(b)

To determine the accounting for progress billings and discuss the classification of progress billing in W Company’s financial statements.

Given information: All the information related to W Company is provided in the question document.

(c)

To identify: To identify the income recognized in the second year of the 4-year contract can be determined using the cost-to-cost method of determining percentage of completion.

Given information: All the information related to W Company is provided in the question document.

(d)

To discuss: To discuss the effect on earnings per share in the 2nd year.

Given information: All the information related to W Company is provided in the question document.