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Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%) 1) Under revenue recognition over time, what is the percentage of completion to date by the end of year 20X0? Percentage of completion to date (in %): 51 2) Under revenue recognition over time, what is the 20X0 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? 1 2 3 A B C No Date Account Title 1 12/31/20X0 construction in process cost of construction revenue from long term contract D E Debit Credit -3,320,000 12,500,000 9,180,000 3) Under revenue recognition over time, what is the 20X1 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)?

Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%) 1) Under revenue recognition over time, what is the percentage of completion to date by the end of year 20X0? Percentage of completion to date (in %): 51 2) Under revenue recognition over time, what is the 20X0 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? 1 2 3 A B C No Date Account Title 1 12/31/20X0 construction in process cost of construction revenue from long term contract D E Debit Credit -3,320,000 12,500,000 9,180,000 3) Under revenue recognition over time, what is the 20X1 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)?

FINANCIAL ACCOUNTING
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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You have just started work as the controller for SomeBig Co., a construction company. The 20X0 fiscal year ended October 31, 20X0 and your predecessor left a few things undone. Most importantly, the company started a project constructing an office building for SCR Engineering during the year and there have been no year-end entries made to record any revenues or expenses associated with the project. Your assistant, Sally, has summarized the entries made during fiscal year 20X0 and 20X1 for you as follows: Year20X0 Year20X1 Construction in process inventory 12,500,000 4,500,000 Cash 12,500,000 4,500,000 Note: to record costs incurred on SCR building contract Accounts receivable 12,200,000 5,800,000 Billings on contract 12,200,000 5,800,000 Note: to record progress billings on SCR building contract Cash 10,000,000 8,000,000 Accounts Receivable 10,000,000 8,000,00 Note: to record collections on SCR building contract Sally also has given you the information summarized below: • Total contract price = $18,000,000 • Original total estimated costs at the beginning of the project= $17,400,000 • Revised total estimated costs as of October 24, 20x0 = $17,000,000 • Start date: February 1, 20X0 • Estimated completion date: February 1, 20X1 Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%) 1) Under revenue recognition over time, what is the percentage of completion to date by the end of year 20X0? Percentage of completion to date (in %): 51 O 2) Under revenue recognition over time, what is the 20x0 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? A No 1 1 B Date 12/31/20X0 2 3 C Account Title construction in process cost of construction revenue from long term contract D E Debit Credit -3,320,000 12,500,000 × 9,180,000 × 3) Under revenue recognition over time, what is the 20X1 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? A B No Date 1 1 12/31/20X1 2 3 с Account Title construction in process cost of construction revenue from long term contract D E Debit 4,320,000 4,500,000 Credit 8,820,000 ☑
Transcribed Image Text:You have just started work as the controller for SomeBig Co., a construction company. The 20X0 fiscal year ended October 31, 20X0 and your predecessor left a few things undone. Most importantly, the company started a project constructing an office building for SCR Engineering during the year and there have been no year-end entries made to record any revenues or expenses associated with the project. Your assistant, Sally, has summarized the entries made during fiscal year 20X0 and 20X1 for you as follows: Year20X0 Year20X1 Construction in process inventory 12,500,000 4,500,000 Cash 12,500,000 4,500,000 Note: to record costs incurred on SCR building contract Accounts receivable 12,200,000 5,800,000 Billings on contract 12,200,000 5,800,000 Note: to record progress billings on SCR building contract Cash 10,000,000 8,000,000 Accounts Receivable 10,000,000 8,000,00 Note: to record collections on SCR building contract Sally also has given you the information summarized below: • Total contract price = $18,000,000 • Original total estimated costs at the beginning of the project= $17,400,000 • Revised total estimated costs as of October 24, 20x0 = $17,000,000 • Start date: February 1, 20X0 • Estimated completion date: February 1, 20X1 Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%) 1) Under revenue recognition over time, what is the percentage of completion to date by the end of year 20X0? Percentage of completion to date (in %): 51 O 2) Under revenue recognition over time, what is the 20x0 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? A No 1 1 B Date 12/31/20X0 2 3 C Account Title construction in process cost of construction revenue from long term contract D E Debit Credit -3,320,000 12,500,000 × 9,180,000 × 3) Under revenue recognition over time, what is the 20X1 year-end adjusting journal entry (you must indicate "no entry required" if that is the case)? A B No Date 1 1 12/31/20X1 2 3 с Account Title construction in process cost of construction revenue from long term contract D E Debit 4,320,000 4,500,000 Credit 8,820,000 ☑
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