29 Jun Question 9. Jot Construction Company
Question
9.
Jot Construction Company uses the percentage-of-completion method of accounting. In 2013, Jot began work on a contract it had received which provided for a contract price of $6,000,000. Additional information related to the project includes: costs incurred during the year were $1,400,000; estimated costs to complete as of December 31, 2013 were $2,100,000. What amount should Jot recognize as gross profit for the project in 2013?
$700,000
$1,000,000
$1,500,000
$2,500,000
10.
Swift Builders, Inc. uses the completed-contract method of accounting for a $450,000 contract that it expects will take two years to complete. At December 31, 2013, the end of the first year of the contract, additional information related to the project includes: costs incurred to date were $290,000; estimated costs to complete were $180,000; billings to date were $325,000; collections to date were $300,000. What amount should Swift recognize as gross profit or loss for 2013?
$ -0-
a $20,000 loss
a $40,000 loss
a $110,000 loss
11.
Miller Company appropriately uses the installment method of accounting to recognize income in its financial statements. Pertinent data relating to this method of accounting includes: installment sales totaled $400,000 for 2013 and $500,000 for 2014; cost of sales were $260,000 for 2013 and $300,00 for 2014; in 2013 Miller collected $280,000 from 2013 sales; in 2014 Miller collected $100,000 from 2013 sales and $300,000 from 2014 sales. What amount should Miller report as realized gross profit on the 2014 income statement?
$155,000
$120,000
$98,000
$35,000
12.
In a consignment sale, the consignor (Points : 6)
does not show the merchandise as an asset on its books.
recognizes revenue only after receiving notification of sale and the cash remittance from the consignee.
recognizes revenue when it ships merchandise to the consignee.
periodically prepares an “account report” for the consignee.
13.
If Collier Costumes, Inc. has the following items at year-end, how much should it report as cash on the balance sheet?
Cash in bank
$25,700
Cash on hand
$620
Post-dated checks
$1,680
Certificates of deposit
$80,000
$80,000
$28,000
$26,320
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