Question: A firm began a three-year, $2 million (contract price) construction project and recognize revenue...

Show transcribed image text A firm began a three-year, $2 million (contract price) construction project and recognize revenue over time based on the percentage of completion. Data for the first year of the contract: _____ Materials, labor, overhead incorporated into the project, $300,00 _____ Amounts billed customers, $80,000 _____ Estimated remaining project cost at year-end, $500,00 Prepare the JEs for the contract for the first year, and show the relevant balances as they would appear in the first year's balances sheet. A bicycle retailer is running a special promotion on one of its road bike model that has a regular selling price of $2,000. For the month of June, purchasers of this model also will receive two years' free maintenance on the bike (maintenance contract period begins July 1). The ret sells similar maintenance contracts applicable to all bicycles sold by the retailer, for $200 each. The special promotion price for the bike with maintenance contract is $1, 800. For the month of June, the retailer had sold 800 bikes under the special promotion (including maintenance contract). Compute revenue to be recognized for the two month period: June 1 through July 31. Assume no bike sales during July.

Never use plagiarized sources. Get Your Original Essay on
Question: A firm began a three-year, $2 million (contract price) construction project and recognize revenue…
Hire Professionals Just from $11/Page
Order Now Click here

A firm began a three-year, $2 million (contract price) construction project and recognize revenue over time based on the percentage of completion. Data for the first year of the contract: _____ Materials, labor, overhead incorporated into the project, $300,00 _____ Amounts billed customers, $80,000 _____ Estimated remaining project cost at year-end, $500,00 Prepare the JEs for the contract for the first year, and show the relevant balances as they would appear in the first year's balances sheet. A bicycle retailer is running a special promotion on one of its road bike model that has a regular selling price of $2,000. For the month of June, purchasers of this model also will receive two years' free maintenance on the bike (maintenance contract period begins July 1). The ret sells similar maintenance contracts applicable to all bicycles sold by the retailer, for $200 each. The special promotion price for the bike with maintenance contract is $1, 800. For the month of June, the retailer had sold 800 bikes under the special promotion (including maintenance contract). Compute revenue to be recognized for the two month period: June 1 through July 31. Assume no bike sales during July.

Open chat
Lets chat on via WhatsApp
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.