Acc Quiz 2 - ACC 326 Quiz #2 2/5/2008 Ch 22 Accounting...

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ACC 326 Quiz #2 2/5/2008 Ch 22 Accounting Changes Ch 18 Revenue Recognition; LT Construction Contracts Name: KEY Class Time: The Koolman Construction Corporation began work on a contract in 1999. The contract price was $3,000,000,, and the company uses the percentage of completion method. Other information relating to the contract is as follows. He company’s year end is December 31. 1999 2000 2001 Costs incurred during the year 500,000 900,000 1,000,000 Estimated costs to complete 1,500,000 1,100,000 - Billings during the year 400,000 850,000 1,750,000 Collections during the year 350,000 800,000 1,850,000 Total contract cost 2,000,000 2,500,000 2,400,000 Estimated Gross profit on contract 1,00,000 500,000 600,000 % of completion 500,000/2,000,000=25% 1,400,000/2,500,000=56% 100% Prepare the following journal entries. (9 points) 1. To record revenue, expense and gross profit for the following years : 1999 Dr Construction expense 500,000 Dr CIP 250,000 Cr Construction revenue 750,000 (500,000/2,000,000)=25%*3,000,000=750,000
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Acc Quiz 2 - ACC 326 Quiz #2 2/5/2008 Ch 22 Accounting...

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