Here is the question and solution. What i was just wondering was if someone knew how they calculated the fourth entry. Also all the last year 2017 column numbers. The collection on billings and progress billings.

Thanks so much.

A6-20 IFRS Construction Contract: Thrasher Construction Co. was contracted to construct a building for $975,000. The building is owned by the customer throughout the contract period. The contract provides for progress payments. Thrasher's accounting year ends 31 December. Work began under the contract on 1 July 20X5, and was completed on 30 September 20X7. Construction activities are summarized below by year: 20X5 Construction costs incurred during the year, $180,000; estimated costs to complete, $630,000; progress billings during the year, $153,000; and collections, $140,00o 20X6 Construction costs incurred during the year, $450,000; estimated costs to complete, $190,000; progress billing during the year, $382,500; and collections, $380,000. 20X7 Construction costs incurred during the year, $195,000. Because the contract was completed, the remaining balance was billed and later collected in full per the contract. Required: 1. Give Thrasher's journal entries to record these events. Assume that percehtage of completion is measured by the ratio of costs incurred to date divided by total estimated construction costs. 2. Provide the balances that would be shown on the SCI and SFP for this contract for each year. 3. Now assume that the building is owned by Thrasher throughout the construction period and title is transferred to the customer only once the building is fully constructed. Prepare the journal entries required to record the events from 20X5 to 20X7. Also calculate the balances that would be shown on the SCI and SFP for this contract for each year. A6-21 ASPE Construction Contract: Assignment 6-20 (EXCEL) (WEB) Requirement 1 20x5 20x6 20x7 1. Costs of construction: 195,000 450,000 Contract costs 180,000 180,000 Cash, payables, etc. 450,000 195,000 2. Progress billings: Accounts receivable. Contract liability 439,500 382,500 153,000 153,000 382,500 439,500 3. Collections on billings Cash Accounts receivable. 455,000 140,000 380,000 140,000 380,000 455,000 4. Recognition of income Contract asset Contract liability. Revenue Construction 63,667 153,000 213,585 149,918 382,500 439,500 216,667 532,418 225,915 180,000 Construction costs 450,000 195,000 Contract costs.. 450,000 180,000 195,000 20x5 $975,000 20x6 $975.000 630,000 190,000 820,000 $155.000 26.83 20x7 s275.000 825,000 Computations: Contract price... Actual costs to date. Estimated costs to complete. Total estimated costs Estimated total contract income % complete. 180,000 630,000 825,000 810,000 S165.000 22.22 SI50.000 100 Apportionment: 20x5: ($180,000+ $810,000) x $975,000 $216,667 20x6: [(S630,000+ $820,000) x $975,000]-$216,667 $532,418 20x7: $975,000-$216,667-$532,418 $225,915