14 Aug Ejercicio P3-4Income recognition on long-term contracts. AICPA ADAPTEDCornwell Construction Company has been operating in Pennsylvania for a number of years. …
Ejercicio P3-4
Income recognition on long-term contracts. AICPA ADAPTED
Cornwell Construction Company has been operating in Pennsylvania for a number of years. During 2011, the firm contracted with the Borough of Lewisburg to build a domed sports complex. Cornwell estimated that it would take three years to complete the facility at a total cost of $25 million. The total contract price was $30 million. During 2011, construction cost of $8.5 million were incurred related to the sports complex, including $500,000 in materials purchased in 2011 but not yet used; estimated additional costs to complete the project were $15.5 million as of December 31, 2011. Contract billings through December 31, 2011, were $9 million of which the Borough of Lewisburg had paid $7.5 million.
Required:
1. Prepare schedules to calculated the amount of income to be recognized by Cornwell Construction on the sports complex for the year ended December 31, 2011, using each of the following methods:
a. Completed –contract method
b. Percentage-of- completion method
2. Prepare all necessary journal entries related to the project for 2011 assuming:
a. The percentage-of-completion method is appropriate.
b. The completed-contract method is appropriate
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.