Belknap Metro Steel GIVEN: Belknap Metro Steel (BMS) contracts with Brookshaw County to build a small highway bridge. BMS will engage subcontractors for general sitework, steel, and concrete / paving, and complete other ancillary work using its own force and locally-sourced materials. The contract was signed April 20, 2022 and BMS expects to finish all required work by November 15 of 2022. BMS has a June 30 fye and sill use PCT CMPLTN to recognize revenue for its 2021 fy.

Cost, Mark-Up: Sitework $470,000,0.15 Steel $290,000,0.15 Concrete&Paving $1,170,000,0.18 Own force labor $525,000,0.22 Own force materials $310,000, 0.25

Francine McKenna is the canny and experienced chief estimator for BMS. She obtains bids from the subcontractors and determines the maximum markup percentage (MU) that will still result in a competitive bid. The weather is propitious and the crews work with purpose and vigor. Three weeks after the West abutment wall was finished the architect certified the percentages of completion for the scheduled values in the contract (column headed Engineering Approval)

Engineering Approval, Incurred Cost: Sitework 0.6,$282,000.00 Steel 0.21,$58,000.00 Concrete/Paving 0.42,$444,600.00 Own force-labor 0.4,$210,000.00 Own force materials 0.35,$124,000.00

Brookshaw will retain 8.0% of the contract price until it has accepted the bridge, and BMS imposes a 10% retainage on its subcontractors, pending owner acceptance and the subs filing Mechanics Lien releases. REQUIRED: Provide the cycle of BMSs journal entries for all events and activities related to the above, and prepare a partial balance sheet for all working capital accounts related to this transaction. For full points provide clear formulas for your values. Use this list of accounts Construction in Process CONST- Accounts Payable Retainage Payable (Subcontractors) Cash Construction Expense Subcontractor Expense Construction in Process Contract Revenue - CONST Inventory Items, construction Payroll-Direct