a.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
The cumulative effect after tax.
b.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
To prepare:
c.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
To prepare: The footnote for the accounting method change in the financial statement.
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Chapter 21 Solutions
Intermediate Accounting
- I need this question answer financial accountingarrow_forwardAssume that each year, a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: Direct materials: $9.50 Direct labor: $10.00 Variable manufacturing overhead: $2.80 Fixed manufacturing overhead: $5.00 Variable selling expenses: $1.70 Fixed selling expenses: $4.50 Total cost per unit: $33.50 The company's relevant range of production is 70,000 - 100,000 units. It believes that spending an additional $235,000 on advertising would increase unit sales by 25%. What is the financial advantage (disadvantage) of spending the additional money on advertising? a. $25,000 b. $19,000 c. $10,000 d. $85,000arrow_forwardGeneral Accountingarrow_forward
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