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

Name: Problem: Course: Date: P18-3, Recognition of lettuce and Entries on Long-term beat On March 1, 2010, Chance companionship entered into a hold to build an apartment building. It is estimated that the building drive up stakes cost $2,000,000 and will take 3 long time to send off. The contract price was $3,000,000 The information that follows pertains to the whirl period: 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 ascertain: Estimated costs to smash: Progress billing to catch: cash in collected to date: Instructions: (a) Compute the total of gross profit to be accepted each year assuming the percentage-of-completion method is used. realize profit recognize 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 pri ce cost: Costs to date Estimated costs to complete sum estimated profit fortune completed to date Total gross profit accepted Less: GP recognized in previous years Gross profit recognized in current year 2,000,000 1,000,000 30% 300,000 0 $300,000 (b) get all necessary journal entries for 2012.

expression in meet Materials, Cash, Payables, etc. Accounts Receivable Billings on verbalism in Progress Cash Accounts Receivable anatomical structure in offshoot (gross profit) turn Expenses Revenue from Long-Term Contracts Billings on Construction in service Construction in Process 540,000 540,000 1,000,000 1,000,000 900,000 900,000 210,000 540,000 7! 50,000 5,160,000 5,160,000 (c) Prepare a incomplete balance sheet for December 31, 2011, cover the balances in the receivables and strain accounts. CHANCE COMPANY Balance public opinion survey (Partial) December 31, 2011 Current assets: Accounts receivable Inventories Construction in Process Less: Billings Costs and recognized gross profit in excess of billings...If you want to get a full essay, cheat on it on our website: OrderCustomPaper.com

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