Business, 24.03.2020 04:21 sabrinachambers444

What is the difference between journal entries to recognize gross profits when revenue is recognized over time and when revenue is recognized upon completion of a long-term project.

Answers: 2

Show answers

Answers

Answer from: edjiejwi

Timing

Explanation:

On a long-term construction project, the amount in the construction in progress account represents the costs of construction plus the gross profit recognized to date, and the billings on construction represents the amounts billed to the customer.

The amount billed to customers on long-term construction project is recorded in the billings on construction account.

The construction in progress account represents the total construction costs (labor, material, overhead) and gross profit recognized to date.

Answer from: sonyav732

TIMING

Explanation:

Critically considering along-term construction project, the total amount in the construction in progress account is represented by the costs of construction and the addition of the gross profit that is recognized to date. However the billings on construction signifies the amounts billed to the customer.

This particular amount that is billed to customers on long-term construction project can be documented in the billings on construction account.

This construction in progress account signifies the total construction costs which can include the followings: gross profit,labor, overhead and material

that can be recognized to date.

When the revenue from a construction type long term contract over time is recognized, in the CIP account balance which contains the following but not limited to the gross profit and losses ,material used. costs of labor.

Therefore, when revenue occur upon completion of a long-term contract, the gross profit is recognized upon completion in the account.

Answer from: Quest

answer; complain or request hazard correction from your employer;

Answer from: Quest

none

explanation:

we're are the selections to pick from?

Another question on Business

Business, 22.06.2019 07:10

In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.

Answers: 2

Answer

Business, 22.06.2019 10:30

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.

Answers: 1

Answer

Business, 22.06.2019 11:20

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

Answer

Business, 22.06.2019 18:00

Abbington company has a manufacturing facility in brooklyn that manufactures robotic equipment for the auto industry. for year 1, abbingtonabbington collected the following information from its main production line: actual quantity purchased-200 units, actual quantity used-110 units, units standard quantity-100 units, actual price paid-$8 per unit, standard price-$10 per unit. atlantic isolates price variances at the time of purchase. what is the materials price variance for year 1? 1. $400 favorable. 2. $400 unfavorable. 3. $220 favorable. 4. $220 unfavorable.

Answers: 2

Answer

You know the right answer?

What is the difference between journal entries to recognize gross profits when revenue is recognized...

Questions