Question - In 2010 Acme Construction Company won the contract to construct an office building at a contract price of $1,200,000. The information relating to the costs and billings for this contract is shown below.
|
|
2010
|
2011
|
2012
|
|
Costs incurred to date **
|
$280,000
|
$600,000
|
$785,000
|
|
Estimated costs yet to be incurred
|
520,000
|
200,000
|
-0-
|
|
Customer billings to date **
|
250,000
|
500,000
|
1,200,000
|
|
Collections of billings to date **
|
120,000
|
320,000
|
1.040,000
|
Required:
Using the percentage-of-completion method compute the following:
1- Percent complete for 2010 and 2011.
2- Revenue recognized for 2010 and 2011.
3- Gross Profit recognized for 2010 and 2011.
4- Prepare the journal entries for 2011.
5- Prepare a partial balance sheet for 2010 (Do not present the cash GL account).