Pinetree Builders has the following data for its Rolling Hills Construction Project. The contract price of the
Question:
Pinetree Builders has the following data for its Rolling Hills Construction Project. The contract price of the project is $18,000,000. Complete the following table with the required information using the percentage of completion method.
2016 | 2017 | 2018 | |
Costs incurred to date | $4,500,000 | $10,500,000 | $15,500,000 |
Estimated costs to complete | 10,500,000 | 2,625,000 | |
Billings during the year | 6,600,000 | 8,400,000 | 3,000,000 |
Cash collections during the year | 6,000,000 | 6,000,000 | 6,000,000 |
Estimated total costs | |||
Estimated total profit | |||
Percentage of Completion | |||
Revenue Recognized in each year | |||
Profit recognized in each year | |||
Current Asset | |||
Current Liabilities |
Required
1). Enter the appropriate amounts in the blank cells above.
2). Prepare the required journal entries for 2016, 2017 and 2018. Omit explanations.
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac