Blossom Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $9.2 million. The following data pertain to the construction period. Costs for the year Estimated costs to complete Progress billings for the year (non-refundable) Cash collected for the year 2020 $3,240,000 3.960,000 2.915.000 2.565,000 2021 3.960,000 1,800,000 3.385,000 3.435,000 2022 1.700,000 -0 2.900,000 3.200.000 Using the percentage of completion method calculate the percent complete for each year of the contract 2020 2021 2022 Percent complete Calculate the amount of the gross profit to be recognized each year of the contract. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (451) 2020 2021 2022 Gross profit/(loss) $ e Textbook and Media List of Accounts Prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) For Year 2020: Account Titles and Explanation Debit Credit (To record cost of construction) 1 (To record progress billings) (To record collections) (To record revenues) (To record construction expenses) For Year 2021: Account Titles and Explanation Debit Credit (To record.cost of construction) (To record progress billings) (To record collections) (To record revenues) 1 (To record construction expenses) What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? December 31, 2020 December 31, 2021 Balance in the Contract Asset/Liability account $ e Textbook and Media List of Accounts Show how the construction contract would be reported on the SFP and the income statement for the year ended Decem 2021. (List Current assets in order of liquidity. Enter negative amounts using either a negative sign preceding the number e.g. -45 parentheses eg. (45)) BLOSSOM ENTERPRISES LTD. Partial Statement of Financial Position $ BLOSSOM ENTERPRISES LTD. Partial Income Statement V Blossom Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $9.2 million. The following data pertain to the construction period. Costs for the year Estimated costs to complete Progress billings for the year (non-refundable) Cash collected for the year 2020 $3,240,000 3.960,000 2.915.000 2.565,000 2021 3.960,000 1,800,000 3.385,000 3.435,000 2022 1.700,000 -0 2.900,000 3.200.000 Using the percentage of completion method calculate the percent complete for each year of the contract 2020 2021 2022 Percent complete Calculate the amount of the gross profit to be recognized each year of the contract. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (451) 2020 2021 2022 Gross profit/(loss) $ e Textbook and Media List of Accounts Prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) For Year 2020: Account Titles and Explanation Debit Credit (To record cost of construction) 1 (To record progress billings) (To record collections) (To record revenues) (To record construction expenses) For Year 2021: Account Titles and Explanation Debit Credit (To record.cost of construction) (To record progress billings) (To record collections) (To record revenues) 1 (To record construction expenses) What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? December 31, 2020 December 31, 2021 Balance in the Contract Asset/Liability account $ e Textbook and Media List of Accounts Show how the construction contract would be reported on the SFP and the income statement for the year ended Decem 2021. (List Current assets in order of liquidity. Enter negative amounts using either a negative sign preceding the number e.g. -45 parentheses eg. (45)) BLOSSOM ENTERPRISES LTD. Partial Statement of Financial Position $ BLOSSOM ENTERPRISES LTD. Partial Income Statement V
