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-MYACCOUNTINGLAB
- What is net sales revenue?arrow_forwardNeed help this question solution general accountingarrow_forwardDepartment A had 4,700 units in work in process that were 75% completed as to labor and overhead at the beginning of the period, 32,600 units of direct materials were added during the period, 35,100 units were completed during the period, and 2,200 units were 26% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.The number of equivalent units of production for material costs for the period was a. 35,100 b. 37,300 c. 30,400 d. 32,600arrow_forward
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