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C3-1 Applying the 5-step model (LO 3-1) On January 1, 2019, LeMoyne Construction Company signs a...
C3-1 Applying the 5-step model (LO 3-1) On January 1, 2019, LeMoyne Construction Company signs a...
C3-1 Applying the 5-step model (LO 3-1) On January 1, 2019, LeMoyne Construction Company signs a contract to build an office building for Franklin Corporation for $10 million. Franklin remits $1 million to LeMoyne upon signing the contract, $5 million when the foundation and all outside components are complete, and $4 million upon full completion. Franklin must pay LeMoyne an additional S100,000 if all construction is completed by July 31, 2020. Required: Apply the 5-step revenue recognition model to determine...
The Five-Step Revenue Recognition Model A. Step 1: Identify the Contract(s) with a Customer B. Step...
The Five-Step Revenue Recognition Model
A.
Step 1: Identify the Contract(s) with a Customer
B.
Step 2: Identify the Performance Obligations in the Contract
C.
Step 3: Determine the Transaction Price
D.
Step 4: Allocate the Transaction Price to the Performance
Obligations in
the Contract
E.
Step 5: Recognize Revenue When (or as) the Entity Satisfies
a
Performance Obligation
F.
Practical Expedients in Applying the Model
G.
Applying the Model to Contract Modifications
C3-1 Applying the 5-step model (LO 3-1)...
1) A construction company entered into a fixed-price contract to build an office building for $20...
1) A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The building was completed during the second year. Construction costs incurred during the second year were $10 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a fixed-price contract to build an o million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million. ng How much revenue and gross profit or loss will the company recognize in the...
On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2021, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $370 million. The expected completion date is
April 1, 2023, just in time for the 2023 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
2021
2022
2023
Costs incurred during the year
$
70
$
110
$
80
Estimated costs
to complete as of...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million How much revenue and gross profit or loss will the company...
Measuring income from long-term contracts. On January 1, 2017 assume that Turner Construction Company agreed to...
Measuring income from long-term contracts. On January 1, 2017 assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth college must pay $60 million upon signing and $30 million in 2018 and 2019. Expected construction costs are $10 million for 2017, $60 million for 2018, and $30 million for 2019 REQUIRED: a.) Indicate the amount and nature of income (revenue and expense) that Turner would recognize during 2017, 2018, and 2019 if it...
Measuring income from long-term contracts. On January 1, 2017 assume that Turner Construction Company agreed to construc...
Measuring income from long-term contracts. On January 1, 2017 assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth college must pay $60 million upon signing and $30 million in 2018 and 2019. Expected construction costs are $10 million for 2017, $60 million for 2018, and $30 million for 2019 REQUIRED: a.) Indicate the amount and nature of income (revenue and expense) that Turner would recognize during 2017, 2018, and 2019 if it...
On June 15, 2021. Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2021. Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for $350 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (5 in millions): 2021 $ 3e 170 Costs incurred during the year Estimated costs to complete as of December 31 2022 $142 0...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue recognition over time vs. upon project completion (LOS-91 On June 15, 2018 Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, DC, for 1430 million. The expected completion date is April 1, 2020. just in time for the 2020 baseball season costs incurred and estimated costs to complete a year-end for the the contract are as follows (s...
C3-1 Applying the 5-step model (LO 3-1) On January 1, 2019, LeMoyne Construction Company signs a contract to build an office building for Franklin Corporation for $10 million. Franklin remits $1 million to LeMoyne upon signing the contract, $5 million when the foundation and all outside components are complete, and $4 million upon full completion. Franklin must pay LeMoyne an additional S100,000 if all construction is completed by July 31, 2020. Required: Apply the 5-step revenue recognition model to determine...
The Five-Step Revenue Recognition Model
A.
Step 1: Identify the Contract(s) with a Customer
B.
Step 2: Identify the Performance Obligations in the Contract
C.
Step 3: Determine the Transaction Price
D.
Step 4: Allocate the Transaction Price to the Performance
Obligations in
the Contract
E.
Step 5: Recognize Revenue When (or as) the Entity Satisfies
a
Performance Obligation
F.
Practical Expedients in Applying the Model
G.
Applying the Model to Contract Modifications
C3-1 Applying the 5-step model (LO 3-1)...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a fixed-price contract to build an o million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million. ng How much revenue and gross profit or loss will the company recognize in the...
On June 15, 2021, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $370 million. The expected completion date is
April 1, 2023, just in time for the 2023 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
2021
2022
2023
Costs incurred during the year
$
70
$
110
$
80
Estimated costs
to complete as of...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million How much revenue and gross profit or loss will the company...
On June 15, 2021. Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for $350 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (5 in millions): 2021 $ 3e 170 Costs incurred during the year Estimated costs to complete as of December 31 2022 $142 0...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue recognition over time vs. upon project completion (LOS-91 On June 15, 2018 Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, DC, for 1430 million. The expected completion date is April 1, 2020. just in time for the 2020 baseball season costs incurred and estimated costs to complete a year-end for the the contract are as follows (s...
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