If you could please help me out with the following:
1) Journal entry at December 31 to record long-term contract revenues, expenses and losses for 2021
2) Balance in the contra asset/liability account
3)How the construction contract would be reported on the SFP and income statement for the year ended Dec 31, 2021
4) Journal entry on Dec 31, 2021 assuming Blossom uses the zero-profit or completed contract method.
The rest of the information is included in case you need it to solve the other parts.
Thanks in advance, I really appreciate it!
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). 2022 1,600 Costs for the year Estimated costs to complete Progress billings for the year (non-refundable) Cash collected for the year 2020 $3,735 4,565 3.410 3.005 2021 4,565 1,700 3,990 4,040 2.300 2,655 Your answer is correct Using the percentage-of-completion method, calculate the percent complete for 2020 and 2021. 2020 2021 Percent complete 45 % 83 % e Textbook and Media List of Accounts Your answer is correct. Calculate the amount of revenue to be recognized in 2020 and 2021. 2020 2021 Revenue recognized $ $ 6,000 eTextbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Accounts Receivable Revenue from Long-Term Contracts Construction Expenses eTextbook and Media List of Accounts Assistance Used x Your answer is incorrect. 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 Your answer is partially correct. Show how the construction contract would be reported on the SFP and the income statement for the year ended December 31, 2021. (List Current assets in order of liquidity. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) BLOSSOM ENTERPRISES LTD. Partial Statement of Financial Position December 31, 2021 Current Assets BLOSSOM ENTERPRISES LTD. Partial Income Statement Year Ended December 31, 2021 $ Gross Profit/(Loss) eTextbook and Media List of Accounts * Your answer is incorrect. Assume that Blossom uses the zero-profit or completed-contract method. What would be the journal entry recorded on December 31, 2021? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media
