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In August, Master Landscaping Services signed a contract to perform$6000 of landscaping services for a customer. The work was startedand completed in September. The customer paid Master $3000 inSeptember and $3000 in October. Master purchased $1000 of materialsfor the project in August, paying $500 at that time and $500 inSeptember.

What are the revenues, expenses, and net incomes for all 3 monthson the cash and accrual basis accounting types? If amount is zero,enter it as such.

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Jarrod Robel
Jarrod RobelLv2
28 Sep 2019

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Master Grill Company sells outdoor grilling products, providinggas and charcoal grills, accessories, and installation services forcustom patio grilling stations. Instructions Respond to therequirements related to the following independent revenuearrangements for Master Grill products and services.

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2) Long-term construction project accounting. DobsonConstruction specializes in the construction of commercial andindustrial buildings. The contractor is experienced in biddinglong-term construction projects of this type, with the typicalproject lasting fifteen to twenty-four months. The contractor usesthe percentage-of-completion method of revenue recognition since,given the characteristics of the contractor's business andcontracts, it is the most appropriate method. Progress towardcompletion is measured on a costto-cost basis. Dobson began work ona lump-sum contract at the beginning of 2015. As bid, thestatistics were as follows:

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Indirect costs 400,000 3,000,000

$1,000,000

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Costs incurred to date

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Latest forecast total cost 3,000,000

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(d) Indicate the account(s) and the amount(s) that would beshown on the balance sheet of Dobson Construction at the end of2015 related to its construction accounts. Also indicate wherethese items would be classified on the balance sheet. Billingscollected during the year amounted to $1,900,000.

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E 450,000 400,000 400,000

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4. Any work remaining to be done on the contracts is expected tobe completed in 2016.

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