Question

($ millions) $ 25.00 Expected Revenue (contract amount in millions of dollars) $ millions) Project Started 20X1 20X2 18.00 $ 20.00 $ 8.00 $ 9.50 $ 9.00 $ 10.00 $ 8.50 $ 9.50 $ Estimated Total Cost (per Engineering) Actual Cost (each year only) Progress Billings (each year only) Cash Received (each year only) $ $ $ $ Project Finished 20X3 20.50 3.00 6.00 7.00 Prepare all journal entries required to account for the project? Round all percentages and dollars to two decimal places.

Percentage complete, Cost Basis.

I need help figuring out the percentages to date and percentages yearly. I initially did 44% but since it says round to two decimal places I changed it to 44.44 and got different numbers. Please help!

Answer 1

	Particulars	2021.00	2022.00	2023.00
A	Cost incurred to Date	8.00	17.50	20.50
			(8+9.5)	(17.5+3)
B	Estimated Total Contract Cost	18.00	20.00	20.50
C	Estimate % of completetion (A/B)	44.44%	87.50%	100.00%
D	Contract Price	25.00	25.00	25.00
E	Reveneue Recogniizable (C*D)	11.11	21.88	25.00
F	Rev recognized in Prior Period		11.11	21.88
G	Revenue Recognized Currently (E-F)	11.11	10.76	3.13
H	Income Recognized Currently (G-H)	3.11	1.26	0.13

Year 2021
Particulars	Debit	Credit
Construction in progress	8
Cash		8
Accounts Reciveable	9
Billing on Contract		9
Cash	8.5
Accounts Receivable		8.5
Construction in progress	3.11
Construction Expenses	8.00
Construction Revenue		11.11

Year 2022
Particulars	Debit	Credit
Construction in progress	9.5
Cash		9.5
Accounts Reciveable	10
Billing on Contract		10
Cash	9.5
Accounts Receivable		9.5
Construction in progress	1.26
Construction Expenses	9.5
Construction Revenue		10.76

Year 2023
Particulars	Debit	Credit
Construction in progress	3
Cash		3
Accounts Reciveable	6
Billing on Contract		6
Cash	7
Accounts Receivable		7
Construction in progress	0.13
Construction Expenses	3
Construction Revenue		3.13
Billing on Contract	25
Construction in Progress		25