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exercises Exercise 5-1 Installment trades; alternative recognition methods ( LO1 LO2 On June 1, 2006, the Luttman and Dowd Company sold inventory to the Ushman Corporation for $400,000. Terms of the sale called for a down payment of $100,000 and four annual installments of $75,000 out-of-pocket on each June 1, beginning June 1, 2007. Each installment also will include take on the unpaid oddment applying an appropriate interest rate. The inventory cost Foster $150,000. The alliance uses the perpetual inventory system. Required: 1. imagine the amount of piggish profit to be recognized from the installment sale in 2006, 2007, 2008, 2009, and 2010 exploitation point of delivery revenue recognition. Ignore interest charges. 2. adopt requirement 1 applying the installment sales method. 3.Repeat requirement 1 applying the cost recovery method. Exercise 5-2 mental synthesis accounting; percentage-of-completion and completed press out methods ( LO4 The Ugenti Construction Company undertake to construct a warehouse building for $2,600,000. Construction began in 2006 and was completed in 2007.

Data relating to the contract are summarized on a lower floor: 20062007 Costs incurred during the year$ 360,000$1,650,000 Estimated costs to complete as of 12/311,560,000 - Billings during the year 430,000 2,130,000 Cash collections during the year320,000 2,280,000 Required: 1.Compute the amount of megascopic profit or loss to be recognized in 2006 and 2007 using the percentage-of-completion method. 2.Compute the amount of gross profit or loss to be recognized in 2006 and 2007 using the completed contract method. 3. crap a incomplete balance sheet to show how the discipline related to this contract would be presented at the end of 2006 using the percentage-of completion method. 4.Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2006 using the completed contract method.... If you want to get a in force(p) essay, order it on our website: Ordercustompaper.com

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