A.

Tablet ($250 / $550) X $500 = $227

Internet Service ($300 / $550) X $500 = $273

January 2,2017
Cash ($500 X 100).................................................................... 50,000
Unearned Service Revenue (100 X $273)…............... 27,300
Sales Revenue (100 X $227)…................................... 22,700

Cost of Goods Sold ($175 X 100)…............................................. 17,500

Inventory …............................................................. 17,500

December 31,2017
Unearned Service Revenue ($27,300 / 3)…............................... 9,100
Service Revenue…................................................... 9,100

B. Tablet $250
Internet Service 300
Tablet service plan 150
total estimated standalone price $700

tablet $214 (250/700) x 600

internet service 257 (300/700) x 600
tablet service 129 (150/700) x 600
total revenue $600

C. January 2.2017
Cash (500 x 100)…............................................................................................ 50,000
unearned service revenue (internet) (50,000 - 25,000)….................. 25,000
sales revenue (equipment)…......................................................... 25,000

COGS (175 x 100)….......................................................................................... 17,500

inventory….................................................................................... 17,500

December 31,2017
unearned service revenue (25,000/3)….......................................................... 8,333
Service revenue….......................................................................... 8,333
 july 1,2017
Cash (600 x 200)…................................................................... 120,000
unearned service revenue (internet)……................ 51,400
unearned service revenue (maintenance)…............ 25,800
sales revenue…....................................................... 42,800

Cost of goods sold (175 x 200)…............................................... 35,000

inventory….............................................................. 35,000

december 31,2017
unearned service revenue (internet) (51,400 / 3) x 6/12…........ 8,567
unearned service revenue (maintenance) (25,800/3) x 6/12….. 4,300
service revenue….................................................... 12,867
A. 2017 2017 2017
Contract price $900,000 $900,000 $900,000
less estimated cost :
cost to date 270,000 450,000 610,000
estimated cost to complete 330,000 150,000 -

estimated total cost 600,000 600,000 610,000

estimated total gross profit $300,000 $300,000 $290,000

2017 ; 2019
270,000/600,000 x 300,000 = 135,000 less 2017 - 2018
recognized gross profit 225,000
2018 gross profit in 2019 65,000
450,000/600,000 x 300,000 = 225,000
less 2017 recognized
gross profit 135,000
gross profit in 2018 90,000

B. total billings….................................................... 900,000

total cost…......................................................... -610,000
gross profit recognized in 2019…......................... 290,000
A. 2017
cost to date (12/31/17)….......................................... 2,880,000
estimated costs to complete…................................. 3,520,000
estimated total costs…............................ 6,400,000

percent complete (2,880,000/6,400,000)…................ 45%

revenue recognized (8,400,000 x 45%)…................... 3,780,000

cost incurred…......................................................... -2,880,000
profit recognized in 2017…....................................... 900,000

2018
cost to date (12/31/2018) (2,880,000 + 2,230,000)…... 5,110,000
estimated cost to complete….................................. 2,190,000
estimated total cost….............................................. 7,300,000

percent complete (5,110,000/7,300,000)…................ 70%

revenue recognized in 2018

(8,400,000 x 70%) - 3,780,000…................................. 2,100,000
cost incurred in 2018…............................................. -2,230,000
loss recognized in 2018…......................................... -130,000

2019
total revenue recognized…...................................... 8,400,000
total cost incurred…................................................. -7,300,000
total profit on contract….......................................... 1,100,000
deduct profit previously recognized
(900,000 - 130,000)…................................................ 770,000
profit recognized on 2019…...................................... 330,000

B. contract price…........................................................ 8,400,000

cost incurred …........................................................ 7,300,000
profit recognized…................................................. 1,100,000
A. 2017
cost to date (12/31/17)….......................................................... 300,000
estimated cost to complete…................................................... 1,200,000
estimated total costs…............................................................ 1,500,000

percent complete (300,000/1,500,000)…...................................

revenue recognized….............................................................. 380,000

cost incurred…......................................................................... -300,000
profit recognized in 2017…....................................................... 80,000

2018
cost to date (12/31/2018)…...................................................... 1,200,000
estimated cost to complete….................................................. 800,000
estimated total cost….............................................................. 2,000,000
contract price…........................................................................ -1,900,000
total loss…............................................................................... 100,000

total loss…............................................................................... 100,000

plus gross profit recognized in 2017…....................................... 80,000
loss recognized in 2018…......................................................... 180,000

2019
cost to date (12/31/19)….......................................................... 2,100,000
estimated cost to complete….................................................. 0
2,100,000
contract price…........................................................................ 1,900,000
total loss…............................................................................... -200,000

total loss…............................................................................... -200,000

less : loss recognized in 2018…................................................. 180,000
gross profit recognized in 2017….............................................. -80,000 -100,000
loss recognized in 2019….......................................................... -100,000

B. 2018
contract price…........................................................................ 1,900,000
estimated cost…...................................................................... -2,000,000
loss recognized…..................................................................... 100,000

2019
contract price…........................................................................ 1,900,000
cost incurred…......................................................................... -2,100,000
 total loss…............................................................................... 200,000
less : loss recognized in 2018…................................................. 100,000
loss recognized…..................................................................... 100,000