The percent completed. Given information: Contract price is $800,000. Actual construction cost for 2018 is $200,000. Actual construction cost for 2019 is $300,000. Actual construction cost for 2020 is $150,000. Estimated total cost for 2018 is $600,000. Estimated total cost for 2019 is $800,000. Estimated total cost for 2020 is $650,000.

Question

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Answer 1

Question

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.

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Answer 2

Question

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.

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Answer 3

Question

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.

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Answer 4

Question

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.

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Answer 5

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.

Answer 6

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

Answer 7

Chapter 8, Problem 8.6P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2018 is $200,000.

Actual construction cost for 2019 is $300,000.

Actual construction cost for 2020 is $150,000.

Estimated total cost for 2018 is $600,000.

Estimated total cost for 2019 is $800,000.

Estimated total cost for 2020 is $650,000.

Answer 8

b.

To determine

The revenue and gross profit for all the years.

Answer 9

b.

To determine

The revenue and gross profit for all the years.

Answer 10

c.

To determine

To prepare: The journal entry.

Answer 11

c.

To determine

To prepare: The journal entry.

Answer 12

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

Answer 13

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

Answer 14

e.

To determine

The net assets or liability for each year of the contract.

Answer 15

e.

To determine

The net assets or liability for each year of the contract.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 8 - What are the primary issues involved in revenue...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - Prob. 8.4Q Ch. 8 - Prob. 8.5Q Ch. 8 - How is a performance obligation defined?Ch. 8 - What are the two criteria to define a good or...Ch. 8 - Prob. 8.8Q Ch. 8 - What principles regarding timing and measurement...Ch. 8 - Prob. 8.10Q

Solution Summary: The author explains the Percentage of Completion method, which recognizes revenue for the completed part of the project.

Concept explainers

The revenue and gross profit for all the years.

To prepare: The journal entry.

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

The net assets or liability for each year of the contract.

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Chapter 8 Solutions