hello can someone please review this and tell me if everything is correct, I am not getting the same answer as my team and want to know what I am doing wrong. Also can you please fix my calculation if needed.

these are the instructions please see attachment for my answer , I really need assistance on part 2 the jornal entries

1- Using the data provided below you are to input formulas in the area designated below to calculate: % complete, revenue to be recognized in each year, and gross profit to be recognized in each year.

You may not alter this spreadsheet e.g., do not add other sections, do not change the descriptions of cell titles, do not modify the format of the designated area below to calculate: % complete, revenue to be recognized in each year, and gross profit to be recognized in each year, etc. Any modification will result in your receiving zero points for this portion of the Excel assignment. Simply input your formulas in the designated area. (10 points)

Hint: I suggest you go to Google and look up the IF Then formulas/functions and Absolute Value function for Excel before you determine how to input your formulas or reference certain cells. I also suggest you use formulas with an IF function regarding the gross profit section of your spreadsheet because your spreadsheet should be able to calculate correct answers whether a contract generates a profit or loss.

See instructions for submitting completed assignment by due date on blackboard.

2- Using the data given and the solutions your spreadsheet generated print out the JE Document posted and use it to prepare all journal entries for 2013. Your journal entries must be handwritten and turned in at the beginning of class the day this assignment is due. (10 points)

Data:
Contract price	1,200,000
	2012	2013	2014
Costs incurred to date**	$280,000	$600,000	$785,000
Estimated costs yet to be incurred	520,000	200,000	0
Customer billings to date**	250,000	500,000	1,200,000
Collections of billings to date**	120,000	320,000	1,040,000
**Hint: You have to figure out the actual cost, billings, and collections for each respective year. The reason why is because the information presented is "to date" not "Costs expended this year" as in the handouts and some of your assigned exercises/problems.

Name(s): Excel Assignment (Percentage-of-completion) Required: 1- Using the data provided below you are to input formulas in the area designated below to calculate: % complete recognized in each year, and gross profit to be recognized in each year. You may not alter this spreadsheet e.g., do not add other sections, do not change the descriptions of cell titles, do n format of the designated area below to calculate: % complete, revenue to be recognized in each year, and gross profi recognized in each year, etc. Any modification will result in your receiving zero points for this portion of the Excel Simply input your formulas in the designated area. (10 points) Hint: I suggest you go to Google and look up the IF Then formulas/functions and Absolute Value function for Excel before you d input your formulas or reference certain cells. I also suggest you use formulas with an IF function regarding the gross profit se spreadsheet because your spreadsheet should be able to calculate correct answers whether a contract generates a profit or los See instructions for submitting completed assignment by due date on blackboard. 2- Using the data given and the solutions your spreadsheet generated print out the JE Document posted and use it journal entries for 2013. Your journal entries must be handwritten and turned in at the beginning of class the day is due. (10 points) Data: Contract price 1,200,000 2012 Costs incurred to date** Estimated costs yet to be incurred Customer billings to date** Collections of billings to date** 2013 $280,000 520,000 250,000 120,000 $600,000 200,000 500,000 320,000 **Hint: You have to figure out the actual cost, billings, and collections for each respective year. The reason why is because the presented is "to date" not "Costs expended this year" as in the handouts and some of your assigned exercises/problems. Use the format provided below to input formulas for each respective year. 2012 2013 Costs expended to date Estimated total costs % complete Contract price % complete Revenue recognized to date Revenue recognized prior Revenue recognized current Estimated total gross profit % complete Gross profit recognized to date Gross profit recognized prior Gross profit recognized current 280,000 800,000 35% 880,000 1,080,000 81% 1,200,000 35% 420,000 0 420,000 1,200,000 81% 972,000 (420,000) 552,000 400,000 35% 140,000 0 140,000 120,000 81% 97,200 (140,000) (42,800) Journal Entries for 2013 1) Construction in Progress 320,000 Materials, Cash, payables 2)Accounts Receivable ### 250,000 Billings on Construction Account 3) Cash ### 200,000 Accounts Receivable 4) Construction in Progress(gross profit) Cost of Construction Revenue from Long-Term Contract ### 420,000 132,000 Help with number 4 ### calculate: % complete, revenue to be ptions of cell titles, do not modify the ch year, and gross profit to be is portion of the Excel assignment. on for Excel before you determine how to arding the gross profit section of your t generates a profit or loss. ment posted and use it to prepare all inning of class the day this assignment 2014 $785,000 0 1,200,000 1,040,000 eason why is because the information exercises/problems. 2014 Costs incurred during the year Estimated costs yet to be incurred Customer billings during the year Collections during the year 2012 $280,000 $520,000 $250,000 $120,000 2013 $320,000 200,000 250,000 200,000 1,665,000 1,665,000 100% 1,200,000 100% 1,200,000 (972,000) 228,000 (465,000) 100% (465,000) (97,200) (562,200) please advise if this shold remian as 100% of N/A 2014 $185,000 0 700,000 720,000 Long-term Construction Contracts Revenue Recognition Recognizing Revenue Over Time According to Percentage of Completion (Formerly referred to as the % of Completion Method per GAAP) Exercise 2 - Solution Your Co. has won the contract to build a parking contract has a fixed price of $6,000,000. During 2013, costs of $1,800,000 were incurred with estimated costs of $2,700,000 yet to be incurred. Billings of $3,000,000 were sent and cash collected was $1,500,000. In 2014, costs incurred were $1,700,000 with remaining costs estimated to be $3,500,000. 2014 billings were $500,000 and $2,000,000 cash was collected. The project was completed in 2015 after additional costs of $3,800,000 were incurred. 2015 billings were $2,500,000 and $2,500,000 cash was collected. December 31. Your Co. uses the percentage-of completion method. and gross profit to be recognized in each year. 2013 Costs expended to date / Estimated total costs = % Complete Contract price x % complete = Revenue recognized to date recogn. prior = Revenue recogn. current Estimated total gross profit x % complete = Gross profit recognized to date recogn. prior = Gross profit recogn. current 2014 2015 1,800,000 3,500,000 7,300,000 4,500,000 40% 7,000,000 50% 7,300,000 100 % 6,000,000 40% 6,000,000 50% 6,000,000 100 % 2,400,000 3,000,000 6,000,0000 (2,400,000) (3,000,000) 600,000 3,000,000 -02,400,000 1,500,000 40% 600,000 -0600,000 (1,000,000) Entire loss gets booked (1,000,000) (1,300,000) Entire loss gets booked (1,300,000) (600,000) 1,000,000 (1,600,000) (300,000) 2013 The numbers on the spreadsheet for 2013 are the same as in Exercise 1. 2014 Costs expended to date for 2014 are $1,800,000 (PY costs) plus $1,700,000 (CY costs). Therefore, costs expended to date for 2014 are $3,500,000. Estimated total cost is the sum of the costs expended to date $3,500,000 plus the revised* estimated costs to complete $3,500,000 which equals $7,000,000. Therefore: Costs expended to date Estimated total costs = % Complete $3,500,000 $7,000,000 = 50% for 2014 *Remember estimated costs to complete will fluctuate each year. Multiply the contract price by the percent complete and this will give you the revenues you may recognize to date as of 2014: $6,000,000 x 50% = $3,000,000 $3,000,000 is the amount of revenue we are allowed to recognize to date. The next step would be to back out any PY revenue recognized. Therefore, the amount of revenue recognized in the current year is $600,000. Revenue Recognized to Date minus Any Prior Years Revenues Recognized: $3,000,000 $2,400,000 = $600,000 Next, calculate Estimated total gross profit, remember gross profit is revenues minus costs equals gross profit (GP). So, as of 2014 estimated gross profit on this contract is an overall loss of $1M (revenues minus estimated total costs $6,000,000 - $7,000,000). Since the contract is never going to generate a profit we recognize the loss in the period incurred. Note: This is different from the period loss recognized in Exercise 1, because in Exercise 1 the contract was generating a profit. In Exercise 2 a profit will never be realized on this contract according to the projected estimated total costs. Therefore, the percent complete becomes non-applicable and the entire loss get booked. The amount of GP (Loss) recognized in the current year is a loss of ($1,600,000) ($1,000,000) $600,000 (back out PY GP recognized) ($1,000,000) + ($600,000) = ($1,600,000) Loss recognized in 2014 Thus, resulting in an overall loss of $1M recognized to date as of 2014. We recognized the following amounts related to Gross Profit (Loss) in each respective year: 2013 2014 $ 600,000 (1,600,000) ($1,000,000) Total Gross Profit recognized to date as of 2014. 2015 Costs expended to date for 2015 are $3,500,000 (PY costs) plus $3,800,000 (CY costs). Therefore, costs expended to date for 2015 are $7,300,000. Estimated total cost is the sum of the costs expended to date $7,300,000. There are no revised estimated costs to complete because the contract is finished in 2015. Therefore, cost expended to date $7,300,000 equal total cost incurred $7,300,000 which equals 100% complete: Costs expended to date Total costs incurred = % Complete $7,300,000 $7,300,000 = 1 = 100% for 2015 Multiply the contract price by the percent complete and this will give you the revenues you may recognize to date as of 2015: $6,000,000 x 100% = $6,000,000 $6,000,000 is the amount of revenue we are allowed to recognize to date. The next step would be to back out any PY revenue recognized. Therefore, the amount of revenue recognized in the current year is $3,000,000. Revenue Recognized to Date minus Any Prior Years Revenues Recognized: $6,000,000 $3,000,000 = $3,000,000 Calculate the Total Gross Profit (Loss) as of 2015. As of 2015 the actual loss on the project totaled ($1,300,000), Revenues minus Total Cost Incurred as of 2015. $6,000,000 - $7,300,000 = ($1,300,000) The loss increased by $300,000 from the projected estimated loss of $1M last year calculated as follows: ($1,300,000) ($1,000,000 (back out PY loss recognized) ($1,300,000) + $1,000,000 = ($300,000) Loss recognized in 2015 Notice the amounts recognized over the life to of the contract do make sense. Revenues we are allowed to recognize totaled $6M. We recognized the following amounts in each respective year: 2013 2014 2015 $2,400,000 600,000 3,000,000 $6,000,000 Total Revenue recognized over the life of the contract. Gross Profit (Loss) overall totaled ($1,300,000). We recognized the following amounts in each respective year: 2013 2014 2015 $ 600,000 (1,600,000) (300,000) ($1,300,000) Total (Loss) recognized over the life of the contract