Solution-Provide the journal entries for each year

Provide the journal entries for each year

Assignment Help Accounting Basics

Reference no: EM132619227

Question - Doxton Company commences the construction of a museum on 1 July 2018. It signs a fixed-price contract for total revenue of $190 million. The project is expected to be completed by the end of June 2021. The expected cost at the commencement of construction was $170 million. The expected costs to complete the construction project can change throughout the project. The following data relates to the project:

	2019 ($M)	2020 ($M)	2021 ($M)
Costs for the year	50	60	50
Costs incurred to date	50	110	160
Estimated costs to complete	120	60	-
Progress billings during the year	40	80	70
Cash collected during the year	35	80	75

The contract is completed as expected on 30 June 2021. Poweron Construction Company uses the percentage-of-completion method to account for its construction contract.

REQUIRED -

a. Compute the gross profit to be recognised for each of the three years.

b. Provide the journal entries for each year. Assume the stage of completion can be reliably determined. Exclude journal narrations.

c. Prepare the journal entries for each year assuming the stage of completion and the outcome of the construction contract cannot be reliably estimated. Show the differences from b) only. Exclude journal narrations.

Reference no: EM132619227

Questions Cloud

Describe positive experience in working on a group project : Describe your most positive experience in working on a group project in which the group's cohesiveness led to greater work productivity. Have you experienced.

Describe the norms and conformity : Norms influence behavior conformity among group members. What factors will influence group members to conform to a group's norms, and when will members remain.

Identify elements that appear to foster employee motivation : When reviewing the descriptions of the work environments, identify elements that appear to foster employee motivation and group cohesion among employees.

What types of informal groups do you belong to in workplace : What types of informal groups do you belong to in your workplace? How do norms of the informal groups to which you belong influence your behavior.

Provide the journal entries for each year : Provide the journal entries for each year. Assume the stage of completion can be reliably determined. Exclude journal narrations

Identify actions manager can take at each stage of process : Consider the Tuckman group stage process schema as discussed in Chapter 3 of your text. Identify specific actions a manager can take at each stage.

5103COMP Operating Systems Assignment : 5103COMP Operating Systems Assignment Help and Solution, Liverpool John Moores University - Assessment Writing Service

What factors you would examine in your research : Identify a generic organization (e.g., manufacturing plant, hospital, educational institution). You will use this same organization in your Final Project.

Review problem based on the organizational design : More than ever, groups and teams are responsible for executing tasks in the workplace. Take a position on the following statement: All organizations should.

User Account

All Pages

Provide the journal entries for each year

Reference no: EM132619227

Reference no: EM132619227

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT