Exercise 5.2: Percentage Completion Method

XYZ continued to work on the JSOM III project in 2008.

On December 31, 2008, XYZs accountant gathered the following details pertaining to the JSOM III building project for 2008.

	2008
Costs incurred during the year	186
Estimated cost to complete	264
Invoices raised on UTD during the year	350
Cash collections from UTD	330

XYZs accounting period is the calendar year and XYZ uses the percentage completion method to recognize revenues.

Required:

1. Compute the percentage of completion in 2008 for the JSOM III project.
2. Record the transactions for 2008 pertaining to the JSOM III project in XYZs accounting books. Assume that all costs incurred during the year were paid in cash.