Provide only revenue recognition and project closing entries

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Question - In 2018 Fabco Inc. started a construction project with a contract price of $2,500,000. The project was completed in 2020 and information for the three years of construction is as follows:

 

2018

2019

2020

Costs incurred this year

$1,050,000

$500,000

$235,000

Estimated costs to complete

850,000

175,000

0

Billings this year

1,000,000

900,000

600,000

Collections this year

770,000

1,040,000

690,000

Required -

1. Prepare all required entries for 2019 for Fabco Inc. assuming they use the percentage of completion method.

2. Calculate the amount of revenue to recognize for 2018 under the zero profit method (IFRS).

3. Provide only the revenue recognition/project closing entries for 2020 assuming Fabco Inc. uses the completed contract method (ASPE).

Reference no: EM132841587

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