Question 7
In 2020, Abel Tesfaye Corp. began a three-year, long-term construction project that qualified for revenue recognition over time. Tesfaye's customer agreed to pay $300,000. By the end of 2020, Tesfaye had spent $60,000 on the project and expected to spend an additional $180,000 over the next two years. Tesfaye measures progress toward completion based on costs incurred. How much revenue will Tesfaye report on the project in its 2020 income statement? (just enter the number, without any commas or a dollar sign)
Question 8
During 2020, Marshall Mathers Corp. offered customers a $10 cash rebate on purchases over $100. At the time of any purchase over $100, customers can choose to provide their address to Mathers. Those who do will receive a $10 prepaid debit card in the mail within 60 days. By the end of 2020, Mathers had sales totaling $160,000, and 1,200 customers applied for rebates totaling $12,000. By the end of 2020, $9,000 in debit cards had been mailed, and the remaining $3,000 in debit cards will be mailed in January 2021. How much should Mathers recognize as revenue in its 2020 income statement? (just enter the number, without any commas or a dollar sign)
Question 9
In January 2020, Jacques Webster, Inc., began selling guitars with a 60-day return policy for $100 each. Webster sold 300 guitars in the first quarter of 2020 (Q1). At the end of Q1, 20 of the 300 guitars had already been returned and Webster expected that 10 more would be returned during Q2 (i.e., 30 returns in total). How much net revenue (i.e., net of returns) should Webster report in its income statement in Q1? (just enter the number, without any commas or a dollar sign)
Question 7 | ||||||
Amount | ||||||
Spent in 2020 ( A ) | 60000 | |||||
Addl in next two years | 180000 | |||||
Total Expenses ( B ) | 240000 | |||||
Revenue on Project ( C ) | 300000 | |||||
2020 Revenue to be reported C*A/B | 75000 | |||||
Revenue recognised in Proportion of Expenses Incurred to Total Expenses | ||||||
Question 8 | ||||||
Amount | ||||||
Sales | 160000 | |||||
Cash Rebates | 12000 | |||||
Net Sales | 148000 | |||||
Entire 1200 customers application for rebates would be net in the year itself. | ||||||
Question 9 | ||||||
Units | Rate | Amount | ||||
Q1 Sales | 300 | 100 | 30000 | |||
Q1 Sales Return | 30 | 100 | 3000 | |||
Q1 Net Sales | 27000 | |||||
Sales Return 10 units in Q2 will be treated as Sales Return of Q1 based on the expected returns. | ||||||
In 2020, Abel Tesfaye Corp. began a three-year, long-term construction project that qualified for revenue recognition over time
Question 8 During 2020, Marshall Mathers Corp. offered customers a $10 cash rebate on purchases over $100. At the time of any purchase over $100, customers can choose to provide their address to Mathers. Those who do will receive a $10 prepaid debit card in the mail within 60 days. By the end of 2020, Mathers had sales totaling $160,000, and 1,200 customers applied for rebates totaling $12,000. By the end of 2020, $9,000 in debit cards had been mailed, and...
Question 5Zamunda Corp. began operations in January 2020. During the first quarter, Zamunda had $200,000 in sales to customers, all on account. By the end of the first quarter, Zamunda had already collected $50,000 from customers, with the remaining $150,000 still outstanding. Zamunda estimates that it will be able to collect $140,000 of the $150,000 in outstanding accounts receivable. What amount will Zamunda report for Net Accounts Receivable on its first-quarter balance sheet? (just enter the number, without any commas...
Question 6 2.5 pts Katheryn Hudson Corp. hired an employee on November 1, 2020. The employee will be paid an hourly wage of $20. The employee worked 150 hours during November and was paid $3,000 on December 7. The employee worked 160 hours during December and will be paid $3,200 on January 7, 2021. How much in wages expense for this employee will Hudson report in its fourth- quarter income statement, ending December 31, 2020? (just enter the number, without...
Exercise 5-21 Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion [LO5-9] Brady Construction Company contracted to build an apartment complex for a price of $6,200,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars Estimated Costs to Complete (As of the End of the Year) Costs Incurred During Year...
5-HW O Exercise 5-21 Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion (LO5-9) Brady Construction Company contracted to build an apartment complex for a price of $6,300,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Year Estimated costs to Complete Costs incurred During (As of the End of...
Exercise 5-21 Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion (LO5-9) Brady Construction Company contracted to build an apartment complex for a price of $6,300,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred During Year Situation 2018 2019 2020 1 1,630 2,520 1,290 2 1,630 1,290...
Exercise 5-21 Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion (LO5-9) Brady Construction Company contracted to build an apartment complex for a price of $6,300,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs incurred During Year Situation 2018 2019 2020 1 1,630 2,520 1,290 2 1630 1,290...
Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion (LO6-9) Brady Construction Company contracted to build an apartment complex for a price of $6,800,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred During Year 2021 2022 2023...
Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion (LO6-9] Brady Construction Company contracted to build an apartment complex for a price of $6,200,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred During Year 2021 2022 2023...
Exercise 6-23 (Static) Income (loss) recognition; Long-term
contract; revenue recognition over time vs. upon project completion
[LO6-9] Brady Construction Company contracted to build an apartment
complex for a price of $5,000,000. Construction began in 2021 and
was completed in 2023. The following is a series of independent
situations, numbered 1 through 6, involving differing costs for the
project. All costs are stated in thousands of dollars.
Situation 1 2 3 4 Costs Incurred During Year 2021 2022 2023 1,500 2,100...