Builderama Lid. is constructing a residential highrise in downtown Vancouver for a contract price of $10,000,000. Costs for this contract were initially estimated to be 57,000,000. The company uses the percentage of completion method of revenue recognition, using the cost-to-cost method of estimating the percentage complete. The following information is available: (Click the icon to review the contract data.) Requirements a. Compute the amount of gross profit to be recognized in each year. Show computations in good form. b. Compute the amount of revenue to be recognized in Year 2. 6. Prepare all the journal entries required in Year 2. [Hint: four entries are required.) d. Prepare the journal entry required in Year 3 to acknowledge completion and acceptance of the project. (Enter all amounts in thousands.) Requirement a. Compute the amount of gross profit to be recognized in each year. Show computations in good form. Determine the formula that will used to calculate the gross profit each year under the cost-to-cost method. Then enter the amounts to calculate the gross profit (loss) each year. (Abbreviations used: GP = Gross profit; GP prev. recognized = Gross profit previously recognized. Do not round until your final answer. Then round to the nearest whole dollar. Enter a "O" for amounts with a zero balance. Use a minus sign or parentheses for a loss.) ) - GP (los) Data Table Year 1 x 1- Year 2 % % X Year 3 % (In $ thousands) Year 1 Year 2 Year 3 Costs incurred each year $ 3.000 $ Requirement b. Compute the amount of revenue to be recognized in Year 2. 6,000 S 1,000 Additional costs to complete estimated at year end 5,000 2.000 0 0 Determine the formula and enter the amounts to calculate the revenue to be recognized on the contract in Year 2. (Do not round until y Billings on construction in progress 3,500 3,000 3,500 = Revenue recognized in Year 2 Cash collected 3.000 4,000 3,000 ( Print Done Choose from any list or enter any number in the input fields and then continue to the next question ? Save for Later Builderama Lid. is constructing a residential highrise in downtown Vancouver for a contract price of $10,000,000. Costs for this contract were initially estimated to be 57,000,000. The company uses the percentage of completion method of revenue recognition, using the cost-to-cost method of estimating the percentage complete. The following information is available: (Click the icon to review the contract data. Requirements a. Compute the amount of gross profit to be recognized in each year. Show computations in good form. b. Compute the amount of revenue to be recognized in Year 2. 6. Prepare all the journal entries required in Year 2. [Hint: four entries are required.) d. Prepare the journal entry required in Year 3 to acknowledge completion and acceptance of the project. (Enter all amounts in thousands.) Requirement c. Prepare all the joumal entries required in Year 2. [Hinc four entries are required.) (Record debits first, then credits. Explanations are not required.) Begin by preparing the entry to show the costs Builderama Ltd. incurred on the project during Year 2. Accounts Debit Credit Date Year 2 i Data Table Year 2 Year 3 6,000 S 1,000 Next, prepare the journal entry to show customer billings during Year 2. $ Year 1 3.000 $ 5,000 Accounts Credit Debit (In $ thousands) Costs incurred each year Additional costs to complete estimated at year end Billings on construction in progress Cash collected 0 0 Date Year 2 3,500 3.000 2.000 3,000 4,000 3,500 3,000 Print Done Choose from any list or enter any number in the input fields and then continue to the next question ? Save for Later Builderama Ltd. is constructing a residential highrise in downtown Vancouver for a contract price of $10,000,000. Costs for this contract were initially estimated to be $7,000,000. The company uses the percentage of completion method of revenue recognition, using the cost-to-cost method of estimating the percentage complete. The following information is available: (Click the icon to review the contract data. Requirements a. Compute the amount of gross profit to be recognized in each year. Show computations in good form. b. Compute the amount of revenue to be recognized in Year 2. 6. Prepare all the journal entries required in Year 2. (Hint: four entries are required.) d. Prepare the journal entry required in Year 3 to acknowledge completion and acceptance the project. (Enter all amounts in thousands.) Prepare the journal entry to show collections from the customer during Year 2. Date Accounts Debit Credit Year 2 i Data Table Now prepare the compound entry to recognize revenue and expenses on the project. Record the expected loss on the long term contre Year 2 Year 3 6,000 S 1,000 Date Accounts Debit Credit $ Year 1 3.000 $ 5,000 (In $ thousands) Costs incurred each year Additional costs to complete estimated at year end Billings on construction in progress Cash collected Year 2 0 3,500 2.000 3,000 4,000 3,500 3,000 3.000 Print Done Choose from any list or enter any number in the input fields and then continue to the next question ? Save for Later Builderama Lid. is constructing a residential highrise in downtown Vancouver for a contract price of $10,000,000. Costs for this contract were initially estimated to be 57,000,000. The company uses the percentage of completion method of revenue recognition, using the cost-to-cost method of estimating the percentage complete. The following information is available: (Click the icon to review the contract data.) Requirements a. Compute the amount of gross profit to be recognized in each year. Show computations in good form. b. Compute the amount of revenue to be recognized in Year 2. 6. Prepare all the journal entries required in Year 2. (Hint: four entries are required.) d. Prepare the journal entry required in Year 3 to acknowledge completion and acceptance the project. (Enter all amounts in thousands.) Record the expected loss on the long term contract. Date Accounts Debit Credit Year 2 i Data Table Requirement d. Prepare the journal entry required in Year 3 lo acknowledge completion and acceptance of the project. (Record debil Year 1 Year 2 Year 3 6,000 S 1,000 Date Accounts Debit Credit $ (In $ thousands) Costs incurred each year Additional costs to complete estimated at year end Billings on construction in progress Cash collected 3.000 $ 5,000 Year 3 3,500 3,000 2,000 3,00 4,00 Il Print Done Choose from any list or enter any number in the input fields and then continue to the next question Save for Later