Scribd Logo
Upload

Welcome to Scribd!

  • 201 views

    Intermediate Accounting II Chapter 18

    Uploaded by

    izza zahratunnisa
    This document contains accounting exercises related to revenue recognition, warranties, and long-term construction contracts. For exercise 18-27, it records initial sales revenue and warranty transactions. For exercise 18-33, it calculates gross profit recognized for long-term construction contracts over multiple years using the percentage-of-completion method. Finally, it provides journal entries to record transactions related to a long-term construction contract in 2020.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Intermediate Accounting II Chapter 18

    Uploaded by

    izza zahratunnisa
    201 views2 pages
    This document contains accounting exercises related to revenue recognition, warranties, and long-term construction contracts. For exercise 18-27, it records initial sales revenue and warranty transactions. For exercise 18-33, it calculates gross profit recognized for long-term construction contracts over multiple years using the percentage-of-completion method. Finally, it provides journal entries to record transactions related to a long-term construction contract in 2020.

    Original Description:

    Intermediate Accounting II Chapter 18

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains accounting exercises related to revenue recognition, warranties, and long-term construction contracts. For exercise 18-27, it records initial sales revenue and warranty transactions. For exercise 18-33, it calculates gross profit recognized for long-term construction contracts over multiple years using the percentage-of-completion method. Finally, it provides journal entries to record transactions related to a long-term construction contract in 2020.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    201 views2 pages

    Intermediate Accounting II Chapter 18

    Uploaded by

    izza zahratunnisa
    This document contains accounting exercises related to revenue recognition, warranties, and long-term construction contracts. For exercise 18-27, it records initial sales revenue and warranty transactions. For exercise 18-33, it calculates gross profit recognized for long-term construction contracts over multiple years using the percentage-of-completion method. Finally, it provides journal entries to record transactions related to a long-term construction contract in 2020.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    Izza Zahratunnisa

    Intermediate Accounting II

    19/438318/EK/22150 IUP 2021

    Assignment — Chapter 18

    Exercise 18-27:

    (a) To record sales revenue, warranties, and related cost of goods sold:

    October 1 2019

    Cash/Accounts receivables 3,600

    Sales revenue 3,200

    Unearned warranty revenue 400

    Cost of goods sold 1,440

    Inventory 1,440

    To record warranty expense on October 25 2019:

    Warranty expense 200

    Cash, parts, labour 200

    (b) Celic company takes notice of the warranty expenses associated with the assurance-
    type warranty when actual warranty costs are received during the 90 day period after the
    customer receives the repaired computer. The company recognises the unearned service
    revenue associated with the service-type warranty and revenue (during the extended
    warranty period) and takes notice of the costs associated with providing the service-type
    warranty as the money is received.

    Exercise 18-33:

    (a) gross profit recognised in:

    2019 2020 2021

    Contract $1,600,000 $1,600,000 $1,600,000


    price

    Costs:

    Costs to date $400,000 $825,000 $1,070,000

    Estimated 600,000 1,000,000 275,000 1,100,000 0 1,070,000


    costs to
    complete

    Total 600,000 500,000 530,000


    estimated
    profit
    Izza Zahratunnisa
    Intermediate Accounting II

    19/438318/EK/22150 IUP 2021


    2019 2020 2021

    Percentage 40% 75% 100%


    completed to
    date

    Total gross 240,000 375,000 530,000


    profit
    recognised

    Less: gross 0 240,000 375,000


    profit
    recognised in
    previous
    years

    Gross profit $240,000 $135,000 $155,000


    recognised in
    current year

    (b) 2020:

    Construction in process 425,000

    Materials, cash, payables 425,000

    Accounts receivable 600,000

    Billings on construction in 600,000


    process

    Cash 540,000

    Accounts receivable 540,000

    Construction expenses 425,000

    Construction in process 135,000

    Revenue from long-term 560,000


    contracts

    (c)

    gross profit recognised in:

    2019 2020 2021

    Gross profit $0 $0 $30,000

    You might also like