2022 2023 Cost during year $ 4 000 000 $8 000 000 $8 100 000 Estimated cost to complete 16 000 000 8 050 000 0 Progress billings to date 4 500 000 11 500 000 25 000 000 Cash collected to date 4 200 000 11 000 000 25 000 000 i. Complete the following Workings Schedule. Do not enter negative values in the schedule. 2021 2022 2023 Cost to date $Answer 29 Question 3 $Answer 30 Question 3 $Answer 31 Question 3 Estimated cost to complete $Answer 32 Question 3 $Answer 33 Question 3 $Answer 34 Question 3 Total estimated cost $Answer 35 Question 3 $Answer 36 Question 3 $Answer 37 Question 3 Percentage complete (Round to nearest whole number) Answer 38 Question 3% Answer 39 Question 3% Answer 40 Question 3% Total contract price $Answer 41 Question 3 $Answer 42 Question 3 $Answer 43 Question 3 Total estimated cost $Answer 44 Question 3 $Answer 45 Question 3 $Answer 46 Question 3 Estimated gross profit or loss $Answer 47 Question 3 $Answer 48 Question 3 $Answer 49 Question 3 Revenue to recognize to date $Answer 50 Question 3 $Answer 51 Question 3 $Answer 52 Question 3 Less Revenue previously recognized $Answer 53 Question 3 $Answer 54 Question 3 $Answer 55 Question 3 Revenue to recognize in year $Answer 56 Question 3 $Answer 57 Question 3 $Answer 58 Question 3 Estimated gross profit to recognize to date $Answer 59 Question 3 $Answer 60 Question 3 $Answer 61 Question 3 Less Gross profit or loss previously recognized $Answer 62 Question 3 $Answer 63 Question 3 $Answer 64 Question 3 Gross profit or loss to recognize in year $Answer 65 Question 3 $Answer 66 Question 3 $Answer 67 Question 3 ii. Prepare the necessary journal entries for 2022. Dr. Answer 68 Question 3 $Answer 69 Question 3 Cr. Answer 70 Question 3 $Answer 71 Question 3 To record construction costs Dr. Answer 72 Question 3 $Answer 73 Question 3 Cr. Answer 74 Question 3 $Answer 75 Question 3 To record billings Dr. Answer 76 Question 3 $Answer 77 Question 3 Cr. Answer 78 Question 3 $Answer 79 Question 3 To record collections Dr. Answer 80 Question 3 $Answer 81 Question 3 Dr. Answer 82 Question 3 $Answer 83 Question 3 Cr. Answer 84 Question 3 $Answer 85 Question 3 To record revenue
BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided.
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Contract price - $25 000 000 |
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2021 |
2022 |
2023 |
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Cost during year |
$ 4 000 000 |
$8 000 000 |
$8 100 000 |
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Estimated cost to complete |
16 000 000 |
8 050 000 |
0 |
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Progress billings to date |
4 500 000 |
11 500 000 |
25 000 000 |
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Cash collected to date |
4 200 000 |
11 000 000 |
25 000 000 |
i. Complete the following Workings Schedule. Do not enter negative values in the schedule.
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2021 |
2022 |
2023 |
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Cost to date |
$Answer 29 Question 3 |
$Answer 30 Question 3 |
$Answer 31 Question 3 |
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Estimated cost to complete |
$Answer 32 Question 3 |
$Answer 33 Question 3 |
$Answer 34 Question 3 |
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Total estimated cost |
$Answer 35 Question 3 |
$Answer 36 Question 3 |
$Answer 37 Question 3 |
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Percentage complete (Round to nearest whole number) |
Answer 38 Question 3% |
Answer 39 Question 3% |
Answer 40 Question 3% |
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Total contract price |
$Answer 41 Question 3 |
$Answer 42 Question 3 |
$Answer 43 Question 3 |
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Total estimated cost |
$Answer 44 Question 3 |
$Answer 45 Question 3 |
$Answer 46 Question 3 |
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Estimated gross profit or loss |
$Answer 47 Question 3 |
$Answer 48 Question 3 |
$Answer 49 Question 3 |
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Revenue to recognize to date |
$Answer 50 Question 3 |
$Answer 51 Question 3 |
$Answer 52 Question 3 |
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Less Revenue previously recognized |
$Answer 53 Question 3 |
$Answer 54 Question 3 |
$Answer 55 Question 3 |
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Revenue to recognize in year |
$Answer 56 Question 3 |
$Answer 57 Question 3 |
$Answer 58 Question 3 |
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Estimated gross profit to recognize to date |
$Answer 59 Question 3 |
$Answer 60 Question 3 |
$Answer 61 Question 3 |
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Less Gross profit or loss previously recognized |
$Answer 62 Question 3 |
$Answer 63 Question 3 |
$Answer 64 Question 3 |
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Gross profit or loss to recognize in year |
$Answer 65 Question 3 |
$Answer 66 Question 3 |
$Answer 67 Question 3 |
ii. Prepare the necessary
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Dr. Answer 68 Question 3 |
$Answer 69 Question 3 |
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Cr. Answer 70 Question 3
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$Answer 71 Question 3 |
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To record construction costs |
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Dr. Answer 72 Question 3 |
$Answer 73 Question 3 |
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Cr. Answer 74 Question 3 |
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$Answer 75 Question 3 |
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To record billings |
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Dr. Answer 76 Question 3 |
$Answer 77 Question 3 |
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Cr. Answer 78 Question 3 |
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$Answer 79 Question 3 |
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To record collections |
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Dr. Answer 80 Question 3 |
$Answer 81 Question 3 |
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Dr. Answer 82 Question 3 |
$Answer 83 Question 3 |
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Cr. Answer 84 Question 3 |
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$Answer 85 Question 3 |
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To record revenue |
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