Question
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
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 $9.7 million. The following data pertain to the construction period (all figures in thousands).
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs for the year | $4,230 | 5,170 | 500 | |||
| Estimated costs to complete | 5,170 | 600 | -0- | |||
| Progress billings for the year (non-refundable) | 3,905 | 4,595 | 1,200 | |||
| Cash collected for the year | 3,445 | 4,645 | 1,610 |
Part 1
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Your answer is partially correct.
Using the percentage-of-completion method, calculate the percent complete for 2020 and 2021
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
