Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed. The journal entries required for each year of the contract.

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Answer 1

Question

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

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ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >

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Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.

Answer 2

Question

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

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Answer 3

Question

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

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Answer 4

Question

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

Answer 6

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

Answer 7

Chapter 8, Problem 8.11P

a.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

Answer 8

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

Answer 9

b.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

A t-account for construction in progress, billings on construction in progress, and accounts receivable.

Answer 10

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

Answer 11

c.

To determine

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - What are the primary issues involved in revenue...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - Prob. 8.4Q Ch. 8 - Prob. 8.5Q Ch. 8 - How is a performance obligation defined?Ch. 8 - What are the two criteria to define a good or...Ch. 8 - Prob. 8.8Q Ch. 8 - What principles regarding timing and measurement...Ch. 8 - Prob. 8.10Q

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed. The journal entries required for each year of the contract.

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed. The journal entries required for each year of the contract.

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed. The net assets or liability for each year of the contract.

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Chapter 8 Solutions

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The journal entries required for each year of the contract.

Completed contract method: This method recognizes gross profit only at the end of the contract, and revenue is recognized each year equivalent to the actual cost incurred, thus, reporting zero gross profit until the contract is completed.

The net assets or liability for each year of the contract.