Homework Answers
Part 1
|
Revenue recognized |
Gross profit (loss) recognized |
|
|
2021 |
2768828 |
688828 |
|
2022 |
1798014 |
-797986 |
|
2023 |
3633158 |
-246842 |
|
Total |
8200000 |
-356000 |
|
Percentages of completion |
|||||
|
Choose numerator |
÷ |
Choose denominator |
= |
% complete to date |
|
|
Actual costs to date |
÷ |
Estimated total costs |
|||
|
2021 |
2080000 |
÷ |
6160000 |
= |
33.7662% |
|
2022 |
4676000 |
÷ |
8396000 |
= |
55.6932% |
|
2023 |
= |
100% |
2021
Revenue = 33.7662%*8200000 = $2768828
Gross profit = 2768828-2080000 = $688828
2022
Revenue = 55.6932%*8200000 = 4566842-2768828= 1798014
Gross profit = 1798014-2596000 = -$797986
2023
Revenue = 8200000-2768828-1798014 = $3633158
Gross profit = 3633158-3880000 = -$246842
Part 2
Part 2 a
|
year |
General Journal |
Debit |
Credit |
|
2021 |
Construction in progress |
2,080,000 |
|
|
Various accounts |
2,080,000 |
||
|
2021 |
Accounts receivable |
2,596,000 |
|
|
Billings on construction contract |
2,596,000 |
||
|
2021 |
Cash |
2,330,000 |
|
|
Accounts receivable |
2,330,000 |
||
|
2021 |
Construction in progress |
688828 |
|
|
Cost of construction |
2,080,000 |
||
|
Revenue from long-term contracts |
2768828 |
||
|
2021 |
No journal entry required |
Part 2 b
|
year |
General Journal |
Debit |
Credit |
|
2022 |
Construction in progress |
2,596,000 |
|
|
Various accounts |
2,596,000 |
||
|
2022 |
Accounts receivable |
2,846,000 |
|
|
Billings on construction contract |
2,846,000 |
||
|
2022 |
Cash |
2,555,000 |
|
|
Accounts receivable |
2,555,000 |
||
|
2022 |
No journal entry required |
||
|
2022 |
Cost of construction |
2596000 |
|
|
Revenue from long-term contracts |
1798014 |
||
|
Construction in progress |
797986 |
Part 3 a
Balance Sheet (Partial)
At December 31, 2021
|
Current assets: |
|
|
Accounts receivable (2596000-2330000) |
266000 |
|
Costs and profit in excess of billings ((2080000+688828)-2596000) |
172828 |
|
Current liabilities: |
|
Part 3 b
Balance Sheet (Partial)
At December 31, 2022
|
Current assets: |
|
|
Accounts receivable (2596000-2330000)+(2846000-2555000) |
557000 |
|
Current liabilities: |
|
|
Billings in excess of costs less loss (2596000+2846000)-(2080000+2596000-(797986-688828)) |
875158 |
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