BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided. Contract price - $25 000 000 2021 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 Complete the following Workings Schedule. Do not enter negative values in the schedule. 2021 2022 2023 Cost to date Estimated cost to complete Total estimated cost Percentage complete (Round to nearest whole number) % % % Total contract price Total estimated cost Estimated gross profit or loss Revenue to recognize to date Less Revenue previously recognized Revenue to recognize in year Estimated gross profit to recognize to date Less Gross profit or loss previously recognized Gross profit or loss to recognize in year Prepare the necessary journal entries for 2022. Dr. Cr. To record construction costs Dr. Cr. To record billings Dr. Cr. To record collections Dr. Dr. Cr. 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 |
- 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 |
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Estimated cost to complete |
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Total estimated cost |
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Percentage complete (Round to nearest whole number) |
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% |
% |
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Total contract price |
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Total estimated cost |
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Estimated gross profit or loss |
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Revenue to recognize to date |
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Less Revenue previously recognized |
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Revenue to recognize in year |
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Estimated gross profit to recognize to date |
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Less Gross profit or loss previously recognized |
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Gross profit or loss to recognize in year |
- Prepare the necessary
journal entries for 2022.
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Dr. |
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Cr.
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To record construction costs |
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Dr. |
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Cr. |
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To record billings |
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Dr. |
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Cr. |
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To record collections |
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Dr. |
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Dr. |
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Cr. |
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To record revenue |
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