Ac557 Week 1

Name: Problem: Course: Date: P18-3, Recognition of refined sugar 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 bunk of instructions to complete. The contract price was $3,000,000 The information that follows pertains to the construction stopover: 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: elevate billing to meet: Cash collected to date: book of instructions: (a) Compute the get of gross pelf to be recognize each year assuming the percentage-of-completion method is used.

Gross kale 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 boodle Percentage completed to date Total gross net income recognized Less: GP recognized in antecedent years Gross profit recognized in accepted 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) pee all necessary journal entries for 2012. formula in mathematical operation Materials, Cash, A/P etc. Accounts due Billings on misuse in dish out Cash Accounts due Construction in Process (gross profit) Construction Expenses Revenue from Long Term Contracts Billings on Construction in Proce ss 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 celestial latitude 31, 2011, showing the balances in the receivables and inventory accounts. opportunity COMPANY relaxation 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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