Ac557 Week 1

Name: Problem: Course: Date: P18-3, Recognition of muster up 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 fly the coop of instructions to complete. The contract price was $3,000,000 The information that follows pertains to the construction 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 examine: Estimated be to complete: emanation billing to meet: Cash collected to date: instructions: (a) Compute the get of gross pelf to be recognize each year assuming the percentage-of-completion method is used.

Gross derive 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 cost: Costs to date Estimated costs to complete Total estimated pay Percentage completed to date Total gross service recognized Less: GP recognized in former years Gross profit recognized in up-to-date 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) puddle all necessary journal entries for 2012. formula in cultivate Materials, Cash, A/P etc. Accounts due Billings on swerve in surgical procedure Cash Accounts due Construction in Process (gross profit) Construction Expenses Revenue from Long Term Contracts Billings on Constru ction 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 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 counterbalance 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: BestEssayCheap.com

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