5. Winnie the Pooh Construction Co. signed a $200,000 contract to construct a ve

Question

5. Winnie the Pooh Construction Co. signed a $200,000 contract to construct a very small building for the State of Florida. The project will begin in 2017 and be completed in 2019 (Yes, they work very, very slowly!). Below are the details: 2017 2018 2019 Costs incurred during the year80,500 $79,700 $20,140 Estimated costs to complete 94 500 19800 Billings during the year Cash collections during the year 80,0 85,000 96,500 18,500 0 84,000 32,000 Winnie the Pooh Construction Co. recognizes revenue over time according to the percentage-of-completion method when accounting for long-term contracts. Required: a. Prepare all journal entries to record costs, billings, collections, and any profit recognition for Pooh's activities for 2017. b. Prepare all journal entries to record costs, billings, collections, and any profit recognition for Pooh's activities for 2018 c. Prepare all journal entries to record costs, billings, collections, and any profit recognition for Pooh's activities for 2019 d. Prepare the journal entry to close the construction accounts in 2019 e. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2017, 2018 and 2019.

Explanation / Answer

Thanks.

Working Particulars 2017 2018 2019 Cost Incurred during the year a 80500 79700 20140 Total Cost Incurred till date b (Cumulative of a) 80500 160200 180340 Estimated Cost to complete c 94500 19800 0 Total Estimated Cost d (b+c) 175000 180000 180340 % of completion on the basis of cost e (d/b*100) 46% 89% 100% Total Revenue f (as given) 200000 200000 200000 Total Revenue need to be booked Till Date (at % of completion g (f*e) 92000 178000 200000 Revenue to be recognized during the year h (year wise revenue) 92000 86000 22000 Profit to be recognized during the year I (h-a) 11500 6300 1860 Billing During the year j (Given in Ques) 85000 96500 18500 Cash Collection during the year k (Given in Ques) 80000 84000 32000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.