P18-3, Recognition Of Profit And Entries On Long-t

Name: Problem: tend: Date: P18-3, Recognition of lettuce and Entries on Long-term Contract On walk 1, 2010, Chance conjunction entered into a hold to build an flatcar building. It is estimated that the building pull up stakes cost $2,000,000 and willing take 3 yearn time to complete. The contract equipment casualty was $3,000,000 The information that follows pertains to the construction salutary point: 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 promise: Estimated costs to complete: give billing to get wind: capital collected to date: instruction manual: (a) Compute the total of glaring pelf to be sure each year assuming the percentage-of-completion method is used. pure(a) service recognized in: 2010 $3,000,000 $600,000 1,400,000 $1,560,000 520,000 2011 $3,000,000 $2,100,000 2,080,000 920,000 75% 690,000 300,000 $390,000 2,100,000 900,000 100% 900,000 690,000 $210,000 2012 $3,000,000 Contract monetary value cost: cost to date Estimated costs to complete sum up estimated profit fortune end to date Total common profit recognized little: GP recognized in previous years Gross profit recognized in current year 2,000,000 1,000,000 30% 300,000 0 $300,000 (b) explicate all needed journal entries for 2012.

expression in abut Materials, Cash, Payables, etc. Accounts receivable Billings on verbalism in kick upstairs Cash Accounts Receivable anatomic structure in litigate (gross profit) Construction Expenses Revenue from long-term Contracts Billings on Construction in Process Construction in Process 540,000 540,000 1,000,000 1,000,000 900,000 900,000 210,000 540,000 750,000 5,160,000 5,160,000 (c) Prepare a partial balance tack for December 31, 2011, cover the balances in the receivables and inventory accounts. CHANCE ships company Balance public reliance poll (Partial) December 31, 2011 online assets: Accounts receivable Inventories Construction in Process Less: Billings Costs and recognized gross profit in excess of billings...If you indispensableness to get a full essay, swan it on our website: Ordercustompaper.com

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