AC2101 S1 2014 Seminar 18 Revenue.pptx

V revenue to be recognized 5m v current prot 0 48 24

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Unformatted text preview:   Contract price = $6m; to be completed in 4 yrs §༊  At end of Year 20x4 §༊  Costs incurred for the year = $6500k- $4620k=$1880k §༊  Billings for the year = $6000k - 4500k = $1500k §༊  Collections for the year = $5500k - $3300k = $2200k 38 19 Do JE1 to JE3 first for 20x4 In SFP •  JE1: Incurrence of costs Dr Construction- in- progress (CIP) $1,880k Cr Cash/payable/acc depreciation/etc. ($1,880k) •  JE2: Progress billings In SFP Dr Account receivable $1,500K Cr Progress billings ($1,500k) •  JE3: Cash collection Dr Cash Cr Account receivable In SFP $2,200k ($2,200k) 39 Scenario 2: Current estimates à༎ Net Loss...
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This document was uploaded on 02/10/2014.

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