Please see attached. It is project from Intermediate Accounting III.

Thank you.

Week 3 Project 1 Please read the scenario and the requirements 2 Submit your solution in the template provided in the doc. Sharing Global Inc. is a power management company and has been planning to diversify its operations into construction con On April 1,2013 Global Inc. began operations of its construction division and entered into contracts for two separat Project A with a contract price was $1,200,000 started on April 1, 2013 and expected to be completed by March 31 Project A provided for penalties of $20,000 per week for late completion. Although during 2014 project A had been on schedule for timely completion, it was completed two weeks late in April 2015. Second project is project B started on April 1, 2013 and expected to be completed by March 31, 2016. Though the original contract price of project B was $1,600,000,change orders during 2015 added $20,000 to the ori The following data pertains to the separate long-term construction projects in progress Project A As of Dec 31,2014 Costs incurred to date Estimated Cost to complete Billings Cash Collections Project B $640,000 160,000 680,000 550,000 Project A $720,000 900,000 880,000 730,000 Project B As of Dec. 31 2015 Costs incurred to date Estimated costs to complete Billings Cash Collections 900,000 1,120,000 1,120,000 1,440,000 360,000 1,420,000 1,250,000 Global Inc. accounts for its long-term construction contracts using the percentage of completion method and the completed contract method for income tax purposes. Enacted tax rates are 25% for 2014 and 30% for 2015 and 2016 Global Inc.'s revenue and expenses for Power Management division for the year 2015 are given below Revenues Selling and Administrative Expenses Depreciation on Plant and Equipment chaged on straight line method every year $1,500,000 495,000 345,000 Global Inc.offers a defined contribution plan to its employees. Plan Benefit Obligation balance on 1/1/2015 was $230,00, Fair Value of Plan Assets on 1/1/15 was $230 The selttlement rate is 10% and expected rate of return is 6% Service cost for 2015 was $43,500 Amortization of prior service cost was $16,500 Actual return on plan assets is $12,400 Selling and Administrative expenses shwon above do not include pension expenses. Deprecaition deducted on income tax return for Power Management division is $395,000 for 2014 and 2 s operations into construction contracts red into contracts for two separate projects. ted to be completed by March 31, 2015. o weeks late in April 2015. d by March 31, 2016. ng 2015 added $20,000 to the original contract price. percentage of completion method for financial reporting purposes r the year 2015 are given below f Plan Assets on 1/1/15 was $230,000 on expenses. vision is $395,000 for 2014 and 2015 Requirements A. Prepare a schedule showing New York's balances in the following accounts at De 31, 2014 1 Accounts Receivable 2 Inventory/Current Liability for Project A 3 Inventory/Current Liability for Project B B. Prepare a schedule showing Global Inc. Gross Profit(Loss) recognized on construction contracts for the years ended under the percentage completion method. C Compute deferred taxes for 2014 and 2015 and record Income Tax entry for 2015. D. Prepare Global Inc. Income Statement for the year 2015. ontracts for the years ended Dec. 31, 2014and 2015, Grading Rubric Requirement a 25 Accounts Receivable Excess of billing over process cost Billings in execess of estimated earnings 8 points Requirement b 40 Correct Gross profit/Loss for Project A 2014 Correct Gross profit/Loss for Project A 2015 Correct Gross profit/Loss for Project B 2014 Correct Gross profit/Loss for Project B 2015 Requirement c 40 Correct pension expense Correct Deferred Tax for 2014 Correct Deferred Tax for 2015 Correct Tax Entry for 2015 Requirement D 25 Correct computation of Income before tax Correct computation of Net Income 5 points are just for timely submission Late submission will attract a penalty of 10 points for every day of late submiss timated earnings 8 points s for Project A 2014 s for Project A 2015 s for Project B 2014 s for Project B 2015 Income before tax Net Income 5 points 10 points 10 points 10 points 10 points 10 points 10 points 15 points 10 points 10 points 5 points 10 points 15 points ely submission act a penalty of 10 points for every day of late submission