Ismail Construction enters into a contract to design and build a hospital. Ismail is responsible for the overall management of the project and identifies various goods and services to be provided, including engineering, site clearance, foundation, procurement, construction of the structure, piping and wiring, installation of equipment, and finishing. Does Ismail have a single performance obligation to the customer in this revenue arrangement? Explain.

Question

Ismail Construction enters into a contract to design and build a hospital. Ismail is responsible for the overall management of the project and identifies various goods and services to be provided, including engineering, site clearance, foundation, procurement, construction of the structure, piping and wiring, installation of equipment, and finishing. Does Ismail have a single performance obligation to the customer in this revenue arrangement? Explain.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: agroupof doctors operates a joint surgery they are planning to provide a private clinic where minor ...

A: Any investment in a business proposal requires careful analysis of the total amount of initial inves...

Q: You are the CFO for Tom & Jerry’s, Inc. Together with Tom Fheelein and Jerry Rhodeint, the compa...

A: 1.

Q: Which answer is correct?   GAAP requires use of the effective interest method of bond amortization w...

A: Explanation: The bond discount or premium will be amortized over the full life of bonds. The straigh...

Q: How would the balance of the discount on bonds payable account usually be reported in the balance sh...

A: Definition:   Bonds payable account: The account which holds the total liability to be paid to the b...

Q: Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares ...

A: Formula: Basic EPS = ( Net Income - preferred dividend ) / outstanding shares of common stock.

Q: Analyze Johnson Stores’ staffing budget for holidays Johnson Stores is planning its staffing for the...

A: Budget: Budget is a process to estimate the income and expenses on estimated basis in the start of t...

Q: (Debtor/Creditor Entries for Continuation of Troubled Debt with New Effective Interest) Crocker Corp...

A: Click to see the answer

Q: Co. manufactures a single product in one department. All direct materials are added at the beginning...

A: TOTAl COST TO ACCOUNT FOR:           Cost of Beginning WIP   319940       Cost added during the ...

Q: (Usefulness, Objective of Financial Reporting) Indicate whether the following statements about the c...

A: Indicate whether the following statements about the conceptual framework are true or false. If false...

Q: Prepare an entity relationship diagram, in good form, for the expenditure cycle, which consists of b...

A: Click to see the answer

Q: Sequential file processing will not permita. data to be edited on a separate computer run.b. the use...

A: A sequential file is processed by reading and processing in a sequence. Firstly, first record is rea...

Q: Crane Company has these comparative balance sheet data: CRANE COMPANYBalance SheetsDecember 31 ...

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If y...

Q: How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial statement...

Q: Explain how the outbreak of the COVID-19 pandemic impacts on the accounting information system as a ...

A: Introduction The outbreak of COVID 19 have affected all functions of companies all over the world in...

Q: (NOL Carryback and Carryforward, Valuation Account Needed) Beilman Inc. reports the following pretax...

A: Click to see the answer

Q: What is lapping?

A: Definition: Lapping: Lapping is an accounting fraud in which an employee steals cash from accounts r...

Q: Distinguish between ethical issues and legal issues.

A:  

Q: Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2017. Expenses...

A: Income statement:   It is a financial statement prepared by a company that reports revenues and expe...

Q: (Ratio Computations and Effect of Transactions) Presented below is information related to Carver Inc...

A: As the question has more than 3 sub-parts, the first subpart is answered. If you want the answer for...

Q: Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The register total...

A: Net Sales  = Total sales /(1 + sales tax rate)   = $29,295 / (1+0.05) = $27,900 Sales tax = Total sa...

Q: Short note on cash inflow and outflow.

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash inflow...

Q: Identify whether the following items should be included in Direct Materials (DM), Direct Labor (DL),...

A: Click to see the answer

Q: Describe presentation and disclosure regarding revenue.

A: Disclosure:   A disclosure is a statement that recognizes the policies of the business as it serves ...

Q: At the beginning of its fiscal year, Koeplin Corporation purchased a machine for $50,000. At the end...

A:  

Q: The general rule is that someone who inherits property has a tax basis in that property equal to its...

A: The inherited property is the property other than cash that a person receives after the death of the...

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity?Why?

A: Investing activity relates to activities relating to sale or purchase of assets which is related to ...

Q: (Discounts) Fahey Company sells Stairmasters to a retailer, Physical Fitness, Inc., for $2,000,000. ...

A: Requirement a:   Revenue amount (Using gross method): 52,000,000.   Revenue amount (Using net method...

Q: Rode Inc. incurred a net operating loss of $500,000 in 2017. Combined income for 2015 and 2016 was $...

A: Prepare the journal entry to record the loss carry back:

Q: In 2018, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional cost...

A: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2018 a...

Q: (Recognition of Profit and Balance Sheet Amounts for Long-Term Contracts) Yanmei Construction Compan...

A: a. Prepare schedules to compute the amount of gross profit to be recognized for the year ended Decem...

Q: Using these data from the comparative balance sheet of Ivanhoe Company, perform horizontal analysis....

A: Formula: Change in Accounts receivable: = Balance of December 31, 2022 - Balance of December 31, 202...

Q: (Equity Investments) Castleman Holdings, Inc. had the following equity investment portfolio at Janua...

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in monetar...

Q: (Entries and Questions for Bond Transactions) On June 30, 2017, Mischa Auer Companyissued $4,000,000...

A: Click to see the answer

Q: (Sales with Returns) On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a pric...

A: Requirement a:

Q: On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable an...

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays intere...

Q: (Fair Value and Equity Methods) Brooks Corp. is a medium-sized corporation specializing in quarrying...

A: a. For the purpose of FVA (Fair Value Adjustment) the following journal entries will be passed: Fo...