Questions from Intermediate Accounting

Q: Rancourt Corp. is a real estate company. Approximately 50%

Rancourt Corp. is a real estate company. Approximately 50% of sales are properties that Rancourt owns. In the remaining 50%, Rancourt brokers the transactions by finding buyers for property owned by o...

Q: Discuss how the contract-based approach to revenue recognition is consistent

Discuss how the contract-based approach to revenue recognition is consistent with the definition of revenues in the conceptual framework. Explain the main concepts of the earnings approach and the con...

Q: Genesis Corporation is an equipment manufacturing company. Instructions

Genesis Corporation is an equipment manufacturing company. Instructions (a) How should revenue be recorded under the earnings and contract-based approaches if Genesis has a normal business practice o...

Q: Chang Industries ships merchandise costing $120,000 on consignment to

Chang Industries ships merchandise costing $120,000 on consignment to XYZ Inc. Chang pays the freight of $5,000. XYZ Inc. is to receive a 15% commission upon sale and a 5% allowance to offset its adve...

Q: Explain the rights and obligations created in the following transactions.

Explain the rights and obligations created in the following transactions. (a) A manufacturer sells goods with terms FOB shipping point. (b) A manufacturer sells goods with terms FOB destination point....

Q: In 2014, Aldcorn Construction Corp. began construction work on a

In 2014, Aldcorn Construction Corp. began construction work on a three-year, $ 10-million contract. Aldcorn uses the percentage-of-completion method for financial accounting purposes. The income to be...

Q: On April 1, 2014, Lisboa Limited entered into a cost

On April 1, 2014, Lisboa Limited entered into a cost-plus-fixed fee contract to manufacture an electric generator for Martinez Corporation. At the contract date, Lisboa estimated that it would take tw...

Q: In 2014, Ronalda Construction Inc. agreed to construct an apartment

In 2014, Ronalda Construction Inc. agreed to construct an apartment building at a price of $10 million. Information on the costs and billings for the first two years of this contract is as follows: I...

Q: During 2014, Antoinette started a construction job with a contract price

During 2014, Antoinette started a construction job with a contract price of $2.5 million. The job was completed in 2016 and information for the three years of construction is as follows: Instructions...

Q: During 2014, Darwin Corporation started a construction job with a contract

During 2014, Darwin Corporation started a construction job with a contract price of S4.2 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2...