Question 1 revenue

Question 1 revenue - Question1 completion method Contract...

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11 Question1-% completion method 2001 2002 2003 Contract price a 300 300 300 Billing in the year 65 130 105 Collections during the year 60 128 100 Less estimated costs Cost incurred during the year b 80 120 50 Estimated costs to complete c 158 39 0 Costs to date d 80 200 250 Estimated total costs e=c+d 238 239 250 Estimated total gross profit f=a-e 62 61 50 % of completion g=d/e 33.61% 83.68% 100% Gross profit (GP) to date h=f*g 20.84 51.05 50.00 GP in the current year i 20.84 30.21 (1.05)
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22 Question1-% completion –Journal entry 2001 2002 2003 Incur costs Dr: CIP (WIP): 80K Cr: Cash or A/P: 80K Dr: CIP (WIP): 120K Cr: Cash or A/P: 120K Dr: CIP (WIP): 50 K Cr: Cash or A/P: 50K Bill client Dr: A/R: 65K Cr: Billing: 65K Dr: A/R: 130K Cr: Billing: 130K Dr: A/R: 105K Cr: Billing: 105K Collect cash Dr: Cash: 60K Cr: A/R: 60K Dr: Cash: 128K Cr: A/R: 128K Dr: Cash: 100K Cr: A/R: 100K Year-end adjustment Dr: Con.exp (COGS): 80K Dr: CIP: 20.84K Cr: Rev: 100.84K Dr: Con.exp : 120K Dr: CIP: 30.21K Cr: Rev: 150.21K Dr: Con.exp : 50K Cr: CIP: 1.05K Cr: Rev: 48.95K Project completed Dr: Billing: 300K Cr: CIP: 300K
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33 Question1-% completion method Cash Dr.
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This note was uploaded on 05/06/2010 for the course COMM Comm 353 taught by Professor Zhang during the Spring '09 term at UBC.

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Question 1 revenue - Question1 completion method Contract...

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