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Unformatted text preview: HOMEWORK - SPRING 2010 1. (1.5 points) Dixon contract price $8,000,000 & estimated total costs $6,000,000 (a) Make the entry to record construction costs of $3,600,000 on construction in process to date. Construction in process (CIP an asset) $3,600,000 Materials, cash, AP etc* $3,600,000 * the credit will be a function of how the costs were paid/not paid (b) Make the entry to record progress billings of $2,000,000. Accounts receivable $2,000,000 Billings on construction in process $2,000,000 (c) Make entry to recognize profit that can be recognized to date on a %-of-completion basis. Construction in process $1,200,000 Construction expenses 3,600,000 Construction revenues $4,800,000 $3,600,000 / $6,000,000 = 60% complete 2. (3 points) Marsh contract price $6,000,000 & estimated total costs $4,000,000 2010 2011 2012 Total costs incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs to complete 2,500,000 1,760,000-0- Customer billings to date 2,200,000 4,000,000 5,600,000 Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for Fill in the correct amounts on the following schedule....
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This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.
- Spring '10