Homework Answers
Answer (a)
|
Total Income as per Percentage of Completion in 2015 |
644000 |
|
Less: Tax (644000*40%) |
257600 |
|
Net Income |
386400 |
Answer (b)
|
Debit |
Credit |
|
|
Construction in Process |
166000 |
|
|
Deferred Tax Liability (166000*40%) |
66400 |
|
|
Retained Earnings (166000-66400) |
99600 |
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Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue...
Tamarisk Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction...
Tamarisk Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2018. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from: Percentage-of-Completion Completed-Contract Difference 2017 $714,000 $647,000 $67,000 2018 642,000 512,000 130,000 (a) Assuming that the tax rate is 30%, what...
inment NEX MY INSTRUCTOR FULL SCREEN PRINTER VERSION Exercise 22-1 Whispering Construction Company changed from the...
inment NEX MY INSTRUCTOR FULL SCREEN PRINTER VERSION Exercise 22-1 Whispering Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2018. For tax purposes, the company employs the completed: contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from: Percentage-of- Completed Completion Contract $761,000 $610,000 688,000 462,000 2017...
Blue Construction Company, which began operations in 2017, changed from the completed-contract to...
Blue Construction Company, which began operations in 2017,
changed from the completed-contract to the percentage-of-completion
method of accounting for long-term construction contracts during
2018. For tax purposes, the company employs the completed-contract
method and will continue this approach in the future. The
appropriate information related to this change is as
follows.
Pretax Income from
Percentage-of-Completion
Completed-Contract
Difference
2017
$966,000
$600,000
$366,000
2018
906,000
434,000
472,000
(a) Assuming that the tax rate is 35%, what is the
amount of net income...
At the beginning of 2017, Culver Construction Company changed from the completed-contract method to recognizing revenue...
At the beginning of 2017, Culver Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $110,500, and
completed-contract $72,300. The tax rate is 30%.
Prepare Culver’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2017, Stellar Construction Company changed from the completed-contract method to recognizing revenue...
At the beginning of 2017, Stellar Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $114,200, and
completed-contract $79,400. The tax rate is 40%.
Prepare Stellar’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2015, a construction company changed from the completed-contract method to the percentage-of-completion...
At the beginning of 2015, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Income before taxes under both methods for the past three years appears below: 2013 2014 2015 Completed-Contract $ 475,000 625,000 700,000 Percentage-of-Completion $ 900,000 700,000 1,050,000 Assuming an income tax rate of 40% for all years, what amount will be debited to Construction in Process account, to record the change at the beginning of 2015?
At the beginning of 2018, a construction company that began operations in 2016 changed from the...
At the beginning of 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion 2016 $ 950,000 $ 1,800,000 2017 1,250,000 1,900,000 2018 1,400,000 2,100,000 Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by f...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to the percentage- of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion $ 800,000 2016 $ 475,000 950,000 2017 625,000 2018 1.050,000 700.000 S1.800.000 $2.800.000 Assuming an income tax rate of 40% for all years, the effect of this accounting change on prior periods should be reported by a...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change at the beginning of 2018 (see page 1271) b. Present partial income statement for the years 2017 and 2018 (see author's illustration 22-3, pag. 1273). c. Prepare Retained Earnings Statement, assuming that the retained earnings beginning balance as of January 1 2017 is $2,000,000 (see illustration 22-5. pag. 1274) E22-1 (L01) (Change in Principle-Long-Term Contracts) Pam Erickson Construction Company changed from the com- pleted-contract...
Tamarisk Construction Company uses the percentage-of-completion method of accounting. In 2017, Tamarisk began work under contract...
Tamarisk Construction Company uses the percentage-of-completion method of accounting. In 2017, Tamarisk began work under contract #E2-D2, which provided for a contract price of $2,227,000. Other details follow: 2017 2018 Cost incurred during the year $660240 $1422000 Estimated costs to complete, as of December 31 911760 0 Billings to date 425000 2227000 Collections during the year 347000 1523000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017 $______________ Revenue...
inment NEX MY INSTRUCTOR FULL SCREEN PRINTER VERSION Exercise 22-1 Whispering Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2018. For tax purposes, the company employs the completed: contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from: Percentage-of- Completed Completion Contract $761,000 $610,000 688,000 462,000 2017...
Blue Construction Company, which began operations in 2017,
changed from the completed-contract to the percentage-of-completion
method of accounting for long-term construction contracts during
2018. For tax purposes, the company employs the completed-contract
method and will continue this approach in the future. The
appropriate information related to this change is as
follows.
Pretax Income from
Percentage-of-Completion
Completed-Contract
Difference
2017
$966,000
$600,000
$366,000
2018
906,000
434,000
472,000
(a) Assuming that the tax rate is 35%, what is the
amount of net income...
At the beginning of 2017, Culver Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $110,500, and
completed-contract $72,300. The tax rate is 30%.
Prepare Culver’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2017, Stellar Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $114,200, and
completed-contract $79,400. The tax rate is 40%.
Prepare Stellar’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2015, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Income before taxes under both methods for the past three years appears below: 2013 2014 2015 Completed-Contract $ 475,000 625,000 700,000 Percentage-of-Completion $ 900,000 700,000 1,050,000 Assuming an income tax rate of 40% for all years, what amount will be debited to Construction in Process account, to record the change at the beginning of 2015?
At the beginning of 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion 2016 $ 950,000 $ 1,800,000 2017 1,250,000 1,900,000 2018 1,400,000 2,100,000 Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by f...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to the percentage- of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion $ 800,000 2016 $ 475,000 950,000 2017 625,000 2018 1.050,000 700.000 S1.800.000 $2.800.000 Assuming an income tax rate of 40% for all years, the effect of this accounting change on prior periods should be reported by a...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change at the beginning of 2018 (see page 1271) b. Present partial income statement for the years 2017 and 2018 (see author's illustration 22-3, pag. 1273). c. Prepare Retained Earnings Statement, assuming that the retained earnings beginning balance as of January 1 2017 is $2,000,000 (see illustration 22-5. pag. 1274) E22-1 (L01) (Change in Principle-Long-Term Contracts) Pam Erickson Construction Company changed from the com- pleted-contract...
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