Taylor Marina has 300 available slips that rent for $710 per season. Payments must be made in full at the start of the...
omacisTaylor Marina has 300 available slips that rent for $710 per season. Payments must be made in full at the start of the boating season, April 1, 2015. Slips for the next season may be reserved if paid for by December 31, 2014. Under a new policy, if payment is made by December 31, 2014, a 5% discount is allowed. The boating season ends October 31, and the marina has a December 31 year-end. To provide cash flow for major dock repairs, the marina operator is also offering a 21% discount to slip renters who pay for the 2016 season.
For the fiscal year ended December 31, 2014, all 300 slips were rented at full price. 195 slips were reserved and paid for the 2015 boating season, and 87 slips for the 2016 boating season were reserved and paid for
In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,722,000. The information relating to the costs and billings for this contract is shown below.
2014 | 2015 | 2016 | ||||
| Costs incurred to date | $405,285 | $751,260 | $1,100,000 | |||
| Estimated costs yet to be incurred | 583,215 | 237,240 | –0– | |||
| Customer billings to date | 303,400 | 856,300 | 1,722,000 | |||
| Collection of billings to date | 260,100 | 708,600 | 1,451,000 |
(a) Assuming that the percentage-of-completion method is used.
(1) compute the amount of gross profit to be recognized in 2014 and 2015.
| Gross profit to be recognized in 2014 | $  [removed] | |
| Gross profit to be recognized in 2015 | $ [removed] |
(2) prepare journal entries for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables.)
Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $825,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $1,453,000. The following data pertain to the construction period.
2014 | 2015 | 2016 | ||||
| Costs to date | $363,000 | $602,250 | $851,000 | |||
| Estimated costs to complete | 462,000 | 222,750 | –0– | |||
| Progress billings to date | 344,000 | 525,000 | 1,453,000 | |||
| Cash collected to date | 321,000 | 493,000 | 1,453,000 |
(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.
| Gross profit recognized in 2014 | $ [removed] | |
| Gross profit recognized in 2015 | $ [removed] | |
| Gross profit recognized in 2016 | $ [removed] |
(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.
| Gross profit recognized in 2014 | $ [removed] | |
| Gross profit recognized in 2015 | $ [removed] | |
| Gross profit recognized in 2016 | $ |
12 years ago
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taylor_marina.xlsx- gurney.xlsx
- shanahan_construction.xlsx
