Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Micron Corp. has excess cash in its checking account and has decided that it's time to invest in stocks. They purchased 16,500 shares of Lift

image text in transcribed
image text in transcribed
Micron Corp. has excess cash in its checking account and has decided that it's time to invest in stocks. They purchased 16,500 shares of Lift at $55.50 per share plus broker's fees for $220. How should Micron account for the $220 broker's fees? a) Record the fees as Investment Expenses -Income Statement b) Record the fees in the Securities Fair Value Adjustment account c) Record the fees as a debit to Investments in Common Stock d) Record the fees as a credit to Investments in Common Stock 9. Fulton Construction began work in 2019 on a construction project with a contract price of $7,500,000 Other details: Costs incurred to date Estimated costs to complete, as of December 31 Billings to date Cash Collections to date 2019 $1,600,000 4.800.000 1,400,000 1,200,000 2020 $3,840,000 2.560.000 4,800,000 3,850,000 Assume that Fulton uses the percentage-of-completion method of accounting, what should Fulton recognize as Profit for the year 2020? a. $385,000. b. $660,000 C. $275,000 d. $0 10. During the 4th quarter 2019 holiday season, Masey's recorded $100M in sales. Included in the $100M was $72M of gift card sales. Of the $72M in gift card sales, consumers purchased merchandise for $8.5M prior to yearend December 31, 2019. Under current accounting rules, what is Masey's recognized revenue for the 4h quarter 2019? a) $28,000,000 b) $36,500,000 c) $8,500,000 d) $80.500,000 Micron Corp. has excess cash in its checking account and has decided that it's time to invest in stocks. They purchased 16,500 shares of Lift at $55.50 per share plus broker's fees for $220. How should Micron account for the $220 broker's fees? a) Record the fees as Investment Expenses -Income Statement b) Record the fees in the Securities Fair Value Adjustment account c) Record the fees as a debit to Investments in Common Stock d) Record the fees as a credit to Investments in Common Stock Fulton Construction began work in 2019 on a construction project with a contract price of $7,500,000 Other details: 2019 2020 Costs incurred to date $1,600,000 Estimated costs to complete, as of December 31 $3,840,000 4.800,000 2,560,000 Billings to date 1,400,000 4,800,000 Cash Collections to date 1,200,000 3,850,000 Assume that Fulton uses the percentage-of-completion method of accounting, what should Fulton recognize as Profit for the year 2020? a. $385,000 b. $660,000 c. $275,000 d. $0 10. During the 4th quarter 2019 holiday season, Masey's recorded $100M in sales. Included in the $100M was $72M of gift card sales. Of the $72M in gift card sales, consumers purchased merchandise for $8.5M prior to yearend December 31, 2019. Under current accounting rules, what is Masey's recognized revenue for the 4th quarter 2019? a) $28,000,000 b) $36,500,000 c) $8,500,000 d) $80.500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

15th Edition

1337902667, 9781337902663

More Books

Students also viewed these Accounting questions