Ac557 Week 1

Name: Problem: Course: Date: P18-3, Recognition of get hold and Entries on coherent-term Contract Intermediate Accounting trio 3/4/2012 On March 1, 2010, Chance confederation entered into a grow to build an apartment building. It is estimated that the building pull up stakes cost $2,000,000 and will take 3 run for of instructions to complete. The contract price was $3,000,000 The information that follows pertains to the construction cessation: 2010 $600,000 1,400,000 1,050,000 950,000 2011 $1,560,000 520,000 2,000,000 1,950,000 2012 $2,100,000 0 3,000,000 2,850,000 cost to examine: Estimated be to complete: advance billing to meet: Cash collected to date: book of instructions: (a) Compute the get of gross pelf to be recognise each year assuming the percentage-of-completion method is used.

Gross meshwork recognized in: 2010 $3,000,000 $600,000 1,400,000 $1,560,000 520,000 2011 $3,000,000 2012 $3,000,000 $2,100,000 0 Contract price be: Costs to date Estimated costs to complete Total estimated network Percentage completed to date Total gross earn recognized Less: GP recognized in forward years Gross profit recognized in authorized year 2,000,000 1,000,000 30% 300,000 0 $300,000 2,080,000 920,000 75% 690,000 300,000 $390,000 2,100,000 900,000 100% 900,000 690,000 $210,000 (b) determine all necessary journal entries for 2012. formula in fulfil Materials, Cash, A/P etc. Accounts due Billings on nose in turn Cash Accounts due Construction in Process (gross profit) Construction Expenses Revenue from Long Term Contracts Billings on Construction in Process C onstruction in Process 540,000 540,000 1,000! ,000 1,000,000 900,000 900,000 210,000 540,000 750,000 3,000,000 3,000,000 (c) Prepare a partial relaxation sheet for declination 31, 2011, showing the balances in the receivables and inventory accounts. opportunity COMPANY ease Sheet (Partial) December 31, 2011 Current assets: Accounts receivable Inventories Construction in Process Less: Billings Costs and recognized...If you urgency to get a full essay, order it on our website: OrderCustomPaper.com

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