Question

in 5 percentage of completion KSON HAS THE FOLLOWING INFORMATION PERTAINING TO A LONG TERM PROJECT 10) COUNTED FOR UNDER THE PERCENTAGE OF COMPLETION METHOD: CONTRACT PRICE 2015 COSTS TO DATE 2015 ESTIMATED REMAINING COSTS 2016 COSTS TO DATE 2016 ESTIMATED REMAINING COSTS 2017 COSTS TO DATE PROJECT COMPLETED IN 2017 620,000 140,000 260,000 313,500 104,500 418,000 REQUIRED: PREPARE JOURNAL ENTRY 4 FOR THE FIRST TWO YEARS OF THE PROJECT (2015 AND 2016) (10 POINTS) 2 015 gross! Protit, CIP 6.620,0vo Cults - Ale 14 400) QUU ol- Est Custs 2641600 220,000 035 77000 Cross Pront, la constation Progrees, Mutentis, par (Ash Air Billing Hour Constrution :
need this answered ASAP please help!

Answer 1

Hi,

Please note that we have passed only receivable journal entries. Due to lack of information, it is assumed that no amount has been received for the accounts receivable.

Solution 18. Noi Porticulars | 2015 Il can. Contract Price 6,20,000 I cost to date 1,40,000 o Estimated remaining cost 2,60,000 | 2016 2017 620,000 | 620.000 3,13,500 4,18,000 1,04,500 @ 16) coot incurred in this yeor 1140,000 1,73,500 104,500 Toral estimated cost 400,000 14,18,000 | 4,18,000 (5+c) Percentage of completion | 35% | 75% 100% biexiod Revenue to date laxf) 12,17,000 4,65,000 6,20,000 - Revenue from Previeril - 2,17,000 4,65,000 | Revenue for this year 217000 248,000 . 155.000 19 Gross for this year Poft to date 177,000 74,500 1 50,500 Scanned with CamScanner

Year | Accounts title Debit ($) Credit ($) 2015 140,000 Construction in Process (CIP) Accounts payable (Cost incurred for the year) 140,000 2015 I Accounts Receivable 2,17.000 - Billing on CIP (Being revenue earned for the year) 2,17,000 2016! CIP 173 500 Accounts Payable (Being cost incaire for the year) 1,73,500 2,46,000 | 2016 | Accounts Receivable Billing on Cie ( Beina revenue earned 2,48000 for the yead, Scanned with CamScanner