Practice Problems for ACG 302 | Questions with 100% Verified
Answers | Latest Update 2026/2027
Question: Answer:
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
obligations exist in the $300 sale?
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Question: Answer:
separately for $20?
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
residual method?
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Elbe.com
separately Package:
for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Question:
Elbe.com Virtual Assistant Package: How many performance Answer:
4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty Program:
residual method? What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
golf punch cards? the free round.
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
$44k gross
Elbe.com profit,Assistant
Virtual $370k billings?
Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Question:
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? Answer:
$18.99 ($20 ÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com
separatelyPackage:
for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross
Elbe.com Method:
profit,Assistant
Virtual $370k Accounting
billings?
Package: How many entries upon
performance Debit
4 Cost of Construction
performance obligations: for total costs,
hardware, creditwarranty,
shipping, Revenue,and andsoftware
credit CIP Inventory for
updates.
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
contract completion
Elbe.com
obligationsPackage: with
Software
exist in the an overall
$300 updatesloss?
sale? allocation if sold the net($20
$18.99 loss.÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross profit, $370k Method: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Picompletion
contract
Elbe.com Co.: 2020 Software
Package: recognized grossloss?
with an overall
updates profit under
allocation percentage-
if sold $81,093
the ($212,608
net($20
$18.99 loss.÷ $316 cumulative gross prices
total standalone profit −×$131,515
$300). prior recognized).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Question:
of-completion?
Elbe.com
separately Package:
for $20? Software updates allocation using the Answer:
$4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross profit, $370k Method: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Pi Co.: 2020 recognized
contract completion with an overall grossloss?
profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley
of-completion?
Elbe.com Co.: Cumulative gross
Package: Software updates allocation profit at using
end ofthe2023 Approximately $241,860
$4 ($300 total price (87%
− $254 completion
hardware − $17×shipping
$278,000− estimated
$25 warranty).total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
(percentage-of-completion)?
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Question:
Chopper CharleyWhat
Co.: Balance
(percentage-of-completion)?
Loyalty Program: sheet reporting
factors determine revenueat Dec 31, 2023
deferral for Answer:
Contract
Golfer asset of $213,860
participation, ($1,043,860
likelihood CIP −eight
of reaching $830,000
punches,billings).
and likelihood of redeeming
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
(percentage-of-completion)?
Long-Term Contract:
golf punch cards? Balance sheet status with $335k costs, $19,000 contract
the free round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin
contractPicompletion
Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Chopper Charley Co.:Balance
Gross profit
(percentage-of-completion)?
Long-Term Contract: sheetrecognized
status with at end of
$335k 2023
costs, $0 (contract
$19,000 is incomplete
contract and noCIP
asset ($389,000 overall loss is anticipated).
− $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
undergross
$44k completed-contract
Completed-Contract Method:
profit, $370k method?
Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Question:
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? Answer:
$0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley
of-completion? Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper
under Charley Co.:Method:
completed-contract
Completed-Contract Total method?
gross profit recognized
Accounting entries uponupon $293,000
Debit Cost($1,200,000 contract
of Construction for price − $907,000
total costs, creditactual totaland
Revenue, costs).
credit CIP Inventory for
Chopper Charley Co.: Balance
(percentage-of-completion)? sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
completion
Punkin
contract in 2020
2024 recognized
Picompletion
Co.: (completed-contract)?
grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred
completion
Punkin Programming
in 2020
Pi Co.: Co.:
2024 recognized Cumulative
(completed-contract)? gross
gross profit profit
under at end of
percentage- Approximately
$81,093 ($212,608$155,141 (39.4%gross
cumulative completion
profit − ×$131,515
$394,000 estimated
prior gross profit).
recognized).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Question:
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon Answer:
$293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred
completion Programming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred Programming
completion Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred Programming
completion Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023 $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
, Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Long-Term Contract: Balance sheet status with $335k costs, $19,000 contract asset ($389,000 CIP − $370,000 billings).
of-completion?
Completed-Contract Method:
$44k gross profit, $370k Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract Method: Accounting entries upon Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
(percentage-of-completion)?
Question: Answer:
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Chopper Charley
of-completion? Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin Pi Co.: 2020 recognized gross profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
(percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Question:
Chopper Charley Co.: Cumulative gross profit at end of 2023 Answer:
Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
under completed-contract method?
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
completion in 2024 (completed-contract)?
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Question: Answer:
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023 $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred Programming Co.: Cumulative gross profit at end of
completion in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Question: Answer:
2021 (percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
2021 (percentage-of-completion)?
Question: Answer:
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
2022 (percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Preferred
2022 Programming Co.: Gross profit recognized in 2022
(percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Question: Answer:
(percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022
2022 (percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
upon contract completion?
Preferred
2022 Programming Co.: Gross profit recognized in 2022
(percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Question:
Preferred Programming Co.: Cumulative gross profit at end of Answer:
Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022
2022 (percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
percentage-of-completion?
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022 Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
2020?
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Question: Answer:
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Preferred Programming Co.: Gross profit recognized in 2023 $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Stone-Y-Brick Co.: Gross profit recognized in 2021 under
2020? $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
percentage-of-completion?
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick Co.: Gross profit recognized in 2020 under Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Stone-Y-Brick
Question:Co.: Contract
percentage-of-completion?
completed-contract
asset/liability reported at Dec 31,
method (2020-2022)?
$1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Answer:
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31, $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
are short-term (<90 days), highly liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Stone-Y-Brick Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Accounting method for >50% equity ownership Consolidation
are short-term (Equity method
(<90 days), is for
highly 20%-50%).
liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Debt investment
Accounting acquisition
method for >50%initial recording
equity ownership Investment is recorded
Consolidation
are short-term (Equity at face
method
(<90 days), isamount,
highly for cash at actual cost, difference as
20%-50%).
liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
premium/discount.
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Debt investment acquisition initial recording Investment is recorded at face amount, cash at actual cost, difference as
Answers | Latest Update 2026/2027
Question: Answer:
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
obligations exist in the $300 sale?
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Question: Answer:
separately for $20?
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
residual method?
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Elbe.com
separately Package:
for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Question:
Elbe.com Virtual Assistant Package: How many performance Answer:
4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty Program:
residual method? What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
golf punch cards? the free round.
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Elbe.com Virtual Assistant Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Elbe.com
obligationsPackage: Software
exist in the updates allocation if sold
$300 sale? $18.99 ($20 ÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
$44k gross
Elbe.com profit,Assistant
Virtual $370k billings?
Package: How many performance 4 performance obligations: hardware, shipping, warranty, and software updates.
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Question:
Elbe.com Package:
obligations Software
exist in the updates allocation if sold
$300 sale? Answer:
$18.99 ($20 ÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com
separatelyPackage:
for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross
Elbe.com Method:
profit,Assistant
Virtual $370k Accounting
billings?
Package: How many entries upon
performance Debit
4 Cost of Construction
performance obligations: for total costs,
hardware, creditwarranty,
shipping, Revenue,and andsoftware
credit CIP Inventory for
updates.
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
contract completion
Elbe.com
obligationsPackage: with
Software
exist in the an overall
$300 updatesloss?
sale? allocation if sold the net($20
$18.99 loss.÷ $316 total standalone prices × $300).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Elbe.com Package:
separately for $20? Software updates allocation using the $4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross profit, $370k Method: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Picompletion
contract
Elbe.com Co.: 2020 Software
Package: recognized grossloss?
with an overall
updates profit under
allocation percentage-
if sold $81,093
the ($212,608
net($20
$18.99 loss.÷ $316 cumulative gross prices
total standalone profit −×$131,515
$300). prior recognized).
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Question:
of-completion?
Elbe.com
separately Package:
for $20? Software updates allocation using the Answer:
$4 ($300 total price − $254 hardware − $17 shipping − $25 warranty).
Completed-Contract
$44k gross profit, $370k Method: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Loyalty Program:
residual method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Pi Co.: 2020 recognized
contract completion with an overall grossloss?
profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley
of-completion?
Elbe.com Co.: Cumulative gross
Package: Software updates allocation profit at using
end ofthe2023 Approximately $241,860
$4 ($300 total price (87%
− $254 completion
hardware − $17×shipping
$278,000− estimated
$25 warranty).total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
(percentage-of-completion)?
Loyalty
residualProgram:
method?What factors determine revenue deferral for Golfer participation, likelihood of reaching eight punches, and likelihood of redeeming
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Long-Term
golf punch Contract:
cards? Balance sheet status with $335k costs, $19,000
the free contract
round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Question:
Chopper CharleyWhat
Co.: Balance
(percentage-of-completion)?
Loyalty Program: sheet reporting
factors determine revenueat Dec 31, 2023
deferral for Answer:
Contract
Golfer asset of $213,860
participation, ($1,043,860
likelihood CIP −eight
of reaching $830,000
punches,billings).
and likelihood of redeeming
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
(percentage-of-completion)?
Long-Term Contract:
golf punch cards? Balance sheet status with $335k costs, $19,000 contract
the free round. asset ($389,000 CIP − $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract
$44k gross profit, $370kMethod: Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin
contractPicompletion
Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Chopper Charley Co.:Balance
Gross profit
(percentage-of-completion)?
Long-Term Contract: sheetrecognized
status with at end of
$335k 2023
costs, $0 (contract
$19,000 is incomplete
contract and noCIP
asset ($389,000 overall loss is anticipated).
− $370,000 billings).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
undergross
$44k completed-contract
Completed-Contract Method:
profit, $370k method?
Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Question:
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? Answer:
$0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley
of-completion? Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper
under Charley Co.:Method:
completed-contract
Completed-Contract Total method?
gross profit recognized
Accounting entries uponupon $293,000
Debit Cost($1,200,000 contract
of Construction for price − $907,000
total costs, creditactual totaland
Revenue, costs).
credit CIP Inventory for
Chopper Charley Co.: Balance
(percentage-of-completion)? sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
completion
Punkin
contract in 2020
2024 recognized
Picompletion
Co.: (completed-contract)?
grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred
completion
Punkin Programming
in 2020
Pi Co.: Co.:
2024 recognized Cumulative
(completed-contract)? gross
gross profit profit
under at end of
percentage- Approximately
$81,093 ($212,608$155,141 (39.4%gross
cumulative completion
profit − ×$131,515
$394,000 estimated
prior gross profit).
recognized).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Question:
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon Answer:
$293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred
completion Programming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred Programming
completion Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Preferred Programming
completion Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023 $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
, Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Long-Term Contract: Balance sheet status with $335k costs, $19,000 contract asset ($389,000 CIP − $370,000 billings).
of-completion?
Completed-Contract Method:
$44k gross profit, $370k Accounting entries upon
billings? Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093
the ($212,608 cumulative gross profit − $131,515 prior recognized).
net loss.
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Completed-Contract Method: Accounting entries upon Debit Cost of Construction for total costs, credit Revenue, and credit CIP Inventory for
(percentage-of-completion)?
Question: Answer:
Punkin Picompletion
contract Co.: 2020 recognized grossloss?
with an overall profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
the net loss.
Chopper Charley
of-completion? Co.: Cumulative gross profit at end of 2023 Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Punkin Pi Co.: 2020 recognized gross profit under percentage- $81,093 ($212,608 cumulative gross profit − $131,515 prior recognized).
(percentage-of-completion)?
Chopper Charley Co.: Cumulative gross profit at end of 2023
of-completion? Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Question:
Chopper Charley Co.: Cumulative gross profit at end of 2023 Answer:
Approximately $241,860 (87% completion × $278,000 estimated total gross profit).
under completed-contract method?
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023
(percentage-of-completion)? Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Chopper Charley Co.: Balance sheet reporting at Dec 31, 2023 Contract asset of $213,860 ($1,043,860 CIP − $830,000 billings).
completion in 2024 (completed-contract)?
Chopper Charley Co.: Gross profit recognized at end of 2023
(percentage-of-completion)? $0 (contract is incomplete and no overall loss is anticipated).
Chopper
under Charley Co.: Total method?
completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Question: Answer:
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Chopper Charley Co.: Gross profit recognized at end of 2023 $0 (contract is incomplete and no overall loss is anticipated).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total method?
under completed-contract gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred Programming Co.: Cumulative gross profit at end of
completion in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
2021 (percentage-of-completion)?
Chopper Charley Co.: Total gross profit recognized upon $293,000 ($1,200,000 contract price − $907,000 actual total costs).
Preferred
completionProgramming Co.: Cumulative gross profit at end of
in 2024 (completed-contract)? Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
Question: Answer:
2021 (percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $155,141 (39.4% completion × $394,000 estimated gross profit).
2021 (percentage-of-completion)?
Question: Answer:
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
2022 (percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Preferred
2022 Programming Co.: Gross profit recognized in 2022
(percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Question: Answer:
(percentage-of-completion)?
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022
2022 (percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Preferred Programming Co.: Cumulative gross profit at end of Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
upon contract completion?
Preferred
2022 Programming Co.: Gross profit recognized in 2022
(percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Question:
Preferred Programming Co.: Cumulative gross profit at end of Answer:
Approximately $154,612 (79.3% completion × $195,000 estimated gross profit).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022
2022 (percentage-of-completion)? Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
percentage-of-completion?
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Preferred Programming Co.: Gross profit recognized in 2022 Approximately -$529 ($154,612 cumulative gross profit − $155,141 2021 gross profit).
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Preferred Programming Co.: Gross profit recognized in 2023
(percentage-of-completion)? $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
2020?
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Question: Answer:
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Preferred Programming Co.: Gross profit recognized in 2023 $57,388 ($212,000 total final gross profit − $154,612 prior recognized).
Stone-Y-Brick Co.: Gross profit recognized in 2021 under
2020? $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick
upon contractCo.: Gross profit recognized in 2020 under
completion? Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
percentage-of-completion?
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31,
percentage-of-completion? $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick Co.: Gross profit recognized in 2020 under Approximately $2,049,200 (37.6% completion × $5,450,000 estimated gross profit).
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Stone-Y-Brick
Question:Co.: Contract
percentage-of-completion?
completed-contract
asset/liability reported at Dec 31,
method (2020-2022)?
$1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Answer:
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Stone-Y-Brick Co.: Contract asset/liability reported at Dec 31, $1,288,000 CIP in Excess of Billings ($4,888,000 CIP − $3,600,000 billings).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Stone-Y-Brick
2020? Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
are short-term (<90 days), highly liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Stone-Y-Brick Co.: Gross profit recognized in 2021 under $2,749,894 ($4,799,094 cumulative gross profit − $2,049,200 2020 gross profit).
Accounting method for >50% equity ownership Consolidation
are short-term (Equity method
(<90 days), is for
highly 20%-50%).
liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under
percentage-of-completion? 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Debt investment
Accounting acquisition
method for >50%initial recording
equity ownership Investment is recorded
Consolidation
are short-term (Equity at face
method
(<90 days), isamount,
highly for cash at actual cost, difference as
20%-50%).
liquid investments.
Stone-Y-Brick Co.: Annual gross profit recognition under 2020: $0; 2021: $0; 2022: $5,594,373 (full profit recognized upon completion).
premium/discount.
Marketable Securitiesmethod
completed-contract vs. Cash(2020-2022)?
Equivalents Marketable securities is a general label for investments (TS, AFS, HTM); cash equivalents
Debt investment acquisition initial recording Investment is recorded at face amount, cash at actual cost, difference as
