Brittle Construction Inc. Accoumting Assingment Help With Solution

Posted on April 13, 2017

Brittle Construction Inc. Accoumting Assingment Help With Solution

PROBLEM #1

 
Brittle Construction, Inc., entered into a fixed-price contract with Trumpet Company on July 1, 2016, to construct a four-story office building. At that time, Brittle estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. Brittle concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2018. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Trumpet under the contract were as follows:
 
At 12-31-2016 At 12-31-2017 At 12-31-2018
Percentage of completion 10% 60% 100%
Costs incurred to date $ 350,000 $2,500,000 $4,250,000
Estimated costs to complete 3,150,000 1,700,000 –0–
Billings to Trumpet, to date 720,000 2,170,000 3,600,000

 
PART A: Assume the contract qualifies for recognizing revenue over time.
1. How much revenue will be recognized in each of the years?
2. Prepare the necessary journal entries that would be recorded for revenue recognition in each of the years. 3. Prepare the balance sheet related journal entries for each of the years.
4. What amount would be recorded as the contract asset or liability at the end of each of the years?
 
PART B: Assume the contract does NOT quality for recognizing revenue over time.
1. How much revenue will be recognized in each of the years?
2. Prepare the necessary journal entries that would be recorded for revenue recognition in each of the years. 3. Prepare the balance sheet related journal entries for each of the years.
4. What amount would be recorded as the contract asset or liability at the end of each of the years?

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
 
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
 
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
 
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
 
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
 
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

 

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

 

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

 

 

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

 

PROBLEM #2

Robust Builders, Inc., builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 10–20 homes and are typically sold during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these situations, sales price reductions are used to promote the sale.

 

During 2016, Robust began construction of an office building for Coral Corporation. The total contract price is $20 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows:

 

 2016 2017 2018
Costs incurred during the year$ 4,000,000$ 9,500,000$4,500,000
Estimated costs to complete as of year-end12,000,0004,500,000
Billings during the year2,000,00010,000,0008,000,000
Cash collections during the year1,800,0008,600,0009,600,000

 

Also during 2016, Robust began a development consisting of 12 identical homes. Robust estimated that each home will sell for $600,000, but individual sales prices are negotiated with buyers. Deposits were received for eight of the homes, three of which were completed during 2016 and paid for in full for $600,000 each by the buyers. The completed homes cost $450,000 each to construct. The construction costs incurred during 2016 for the nine uncompleted homes totaled $2,700,000.

 
PART A: Assume the contract qualifies for recognizing revenue over time.

  1. How much revenue will be recognized in each of the years?
  2. Prepare the necessary journal entries that would be recorded for revenue recognition in each of the years. (If no entry, note “no entry”.)
  3. Prepare the balance sheet related journal entries for each of the years.
  4. What amount would be recorded as the contract asset or liability at the end of each of the years?

 

PART B: Assume the contract does NOT quality for recognizing revenue over time.

  1. How much revenue will be recognized in each of the years?
  2. Prepare the necessary journal entries that would be recorded for revenue recognition in each of the years. (If no entry, note “no entry”.)
  3. Prepare the balance sheet related journal entries for each of the years.
  4. What amount would be recorded as the contract asset or liability at the end of each of the years?

 

PART C: Assume the same information for 2016 and 2017, but that as of year-end 2017 the estimated cost to complete the office building is $9,000,000. All other information remains the same.

Assume the contract qualifies for recognizing revenue over time.

  1. How much revenue will be recognized in 2017 and 2018?
  2. Prepare the necessary journal entries that would be recorded for revenue recognition in 2017 and 2018. (If no entry, note “no entry”.)
  3. Prepare the balance sheet related journal entries for 2017 and 2018.
  4. What amount would be recorded as the contract asset or liability at the end of 2017?

 

PART D: Assume the same information for 2016 and 2017, but that as of year-end 2017 the estimated cost to complete the office building is $9,000,000. All other information remains the same.

Assume the contract does NOT quality for recognizing revenue over time.

  1. How much revenue will be recognized in 2017 and 2018?
  2. Prepare the necessary journal entries that would be recorded for revenue recognition in 2017 and 2018. (If no entry, note “no entry”.)
  3. Prepare the balance sheet related journal entries for 2017 and 2018.
  4. What amount would be recorded as the contract asset or liability at the end of 2017?

 

Product Code :Acc41

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary
User Rating
5 based on 1 votes
URL