BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
14 views

In 2019, Dreyer Corp. began construction work under a 3-year contract, which represents a single performance obligation. The contract price is $800,000, and the performance obligation is satisfied over time. The financial statement presentations relating to this contract on December 31, 2019, follow:

Chapter 17, Problem 6P, In 2019, Dreyer Corp. began construction work under a 3-year contract, which represents a single

Required:

  1. 1. How much cash did Dreyer collect during 2019?
  2. 2. What percentage complete is Dreyer as of the end of 2019?
  3. 3. What is the estimated gross profit before tax on the contract as of the end of 2019?

1.

To determine

State the amount of cash collected during the year 2019.

Explanation

Contract:

Contract is an agreement among two parties or more parties which includes enforceable obligations and rights. A contract can be “written, oral or implied by ordinary business practices”.

The difference between the progress billings and the accounts receivable is the amount of cash collected...

2.

To determine

State the percentage of completion as of end of 2019 for Incorporation D.

3.

To determine

State the estimated gross profit before the tax on the contract as of the end of 2019.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is inflation and what causes it?

Essentials of Economics (MindTap Course List)

What is a partial dependency?

Accounting Information Systems

How do unions affect the natural rate of unemployment?

Brief Principles of Macroeconomics (MindTap Course List)

What does cross-referencing mean in the posting process?

College Accounting (Book Only): A Career Approach

MIRR Refer to Problem 11-1. What is the projects MIRR?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What steps are followed in posting from the sales journal to the accounts receivable ledger?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

What does human capital include?

Pkg Acc Infor Systems MS VISIO CD