Assessment 2: Balance Sheet, Income Statement, and Cash Flow

Assessment 2

Use this template to complete Parts 1, 2, and 4 of Assessment 2.

Part 1: Classified Balance Sheet

Jordan Contracting Company
Balance Sheet
December 31, 2018
Assets
Current assets
Long-term investments
Property, plant, and equipment
Intangible assets

Liabilities and Stockholders’ Equity
Current liabilities
Long-term liabilities

Stockholders’ equity

Part 2: Income and Retained Earnings Statements

D.B. Stanley Company
Income Statement
For the Year Ended December 31, 2018

Part 2: Continued D.B. Stanley Company

Retained Earnings Statement

For the Year Ended December 31, 2018

Part 4: Revenue Recognition

1. Explain each of the following methods of revenue recognition and indicate whether each is in accordance with generally accepted accounting principles.

a. Point of sale:

b. Completed-contract:

c. Percentage-of-completion:

d. Installment-sales:

2. Compute the revenue to be recognized in fiscal year 2018

3. 5 for the two operating divisions of Worth More Industries in accordance with generally accepted accounting principles. Where appropriate, show all calculations leading to the final solution.

Worth More Industries

A. Clear Water Pools Construction Division

B. Madoff Securities Division