Homework Answers
Answer is d. $390,000 on 2018 retained earnings account.
Explanation:
Profits as per Percentage completion method for 2016 and 2017 (800,000+950,000): $1750,000
Less: Profits as per Completed contracts method for 2016 and 2017(475000+625000): $1100,000
Difference in Profits for change (increase in net profits): $650,000
Less: tax @40% $260,000
Net increase in profits due to change to be transferred to retained earnings: $390,000
Add Answer to:
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to...
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...
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...
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...
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...
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...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue this proach in the future. Ad alta com of completion method of e s through the Deferred to using for long-term construction s account. The programmation 2018 For de change the c ente r s Pretax income from Percentage of Completed Completion Contract 5727.000 $561.000 640.000 490,000 Difference 1.000 190.000 (a) Assuming that the tax is 04. What is the amount of income that...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It will continue to use the completed contract method for tax purposes. Income before taxes under both the methods for Years 1 and 2 are as follows: Completed-Contract Percentage-of-Completion Year 1 $100,000 $180,000 Year 2 $200,000 $250,000 Prepare the journal entry(ies) to change to the percentage-of-completion method. Assume an income tax rate of 20%
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...
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...
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...
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...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue this proach in the future. Ad alta com of completion method of e s through the Deferred to using for long-term construction s account. The programmation 2018 For de change the c ente r s Pretax income from Percentage of Completed Completion Contract 5727.000 $561.000 640.000 490,000 Difference 1.000 190.000 (a) Assuming that the tax is 04. What is the amount of income that...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It will continue to use the completed contract method for tax purposes. Income before taxes under both the methods for Years 1 and 2 are as follows: Completed-Contract Percentage-of-Completion Year 1 $100,000 $180,000 Year 2 $200,000 $250,000 Prepare the journal entry(ies) to change to the percentage-of-completion method. Assume an income tax rate of 20%
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...
Most questions answered within 3 hours.
-
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 42 seconds ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 8 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 16 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 16 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 18 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 19 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 23 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 38 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 40 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago -
Let’s say you are teaching a typically-developing young child
how to eat with a spoon. Describe...
asked 57 minutes ago