[Solved] Poseidon Corporation,based in Greece,specializes in Painting Cargo Ships

Question 247
Essay

Poseidon Corporation,based in Greece,specializes in painting cargo ships.On December 1,2016 Poseidon received $300,000 in advance from Worldwide Shipping,Inc.to paint a 40,000-ton cargo vessel.The painting process is scheduled to begin on December 1,2016,and the ship is to be returned to Worldwide in four months.Worldwide retains legal title to the ship during the contract period,and can sell the ship to another shipper during the contract period if it so chooses.
Required: Assuming Poseidon uses "proportion of time" as its measure of progress toward completion,prepare any journal entry that Poseidon would record:
(1)at inception of the contract
(2)at the end of 2016 to recognize all revenue associated with this contract that should be recognized in 2016.Ignore any costs associated with providing the painting service.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans