Question Three: $960,000. The job was completed in 2022. The following information is available: During 2020 Nass Company started a construction job with a contract price of Costs to date Estimated costs to complete Billings to date Collections to date 2020 $240,000 360,000 180,000 162.000 2021 $495,000 165,000 540,000 486.000 2022 $642,000 0 960,000 855,000 Required: a) Preparing all the journal entries for 2021 Assuming Nass uses the percentage-of-completion method. b) Assume that Nass uses the cost-recovery method, record the revenue, and gross profit if any, recognized in 2021 and 2022. c) Show the presentation of construction-in-process and billings in construction-in-process accounts in the statement of financial position in 2020 under both the percentage-of-completion and the cost-recovery method. AS -99 AT

Question Three: $960,000. The job was completed in 2022. The following information is available: During 2020 Nass Company started a construction job with a contract price of Costs to date Estimated costs to complete Billings to date Collections to date 2020 $240,000 360,000 180,000 162.000 2021 $495,000 165,000 540,000 486.000 2022 $642,000 0 960,000 855,000 Required: a) Preparing all the journal entries for 2021 Assuming Nass uses the percentage-of-completion method. b) Assume that Nass uses the cost-recovery method, record the revenue, and gross profit if any, recognized in 2021 and 2022. c) Show the presentation of construction-in-process and billings in construction-in-process accounts in the statement of financial position in 2020 under both the percentage-of-completion and the cost-recovery method. AS -99 AT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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