Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 (11 points) Flynn Construction Company signed a contract on June 15, 2019 to construct an office building. The contract price for the building

image text in transcribed
Question 5 (11 points) Flynn Construction Company signed a contract on June 15, 2019 to construct an office building. The contract price for the building is $6,500,000. Construction started in June 2019 and was completed in late 2020. The company has a December 31 year end. Information for the contract is as follows: 2019 2020 Costs incurred during the year $2,400,000 $3,000,000 Estimated costs to complete as of December 31 2,600,000 0 Billings during the year 2,950,000 3,550,000 Collections during the year 2,500,000 3,700,000 Assume that Flynn uses the percentage-of-completion method of accounting for long term contracts. Required: Prepare the journal entries to record the transactions in 2020 assuming that Flynn Construction follows IFRS. Space is provided below for calculations and a general journal is provided for journal entries. Dates are not required for journal entries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of Accounting Information In Markets

Authors: Peter Ove Christensen, Gerald Feltham

2nd Edition

1402072295, 9781402072291

More Books

Students also viewed these Accounting questions

Question

In Problems 6980, find the sum of each sequence. 40 5 k=1

Answered: 1 week ago

Question

understand the general outline and structure of the current book.

Answered: 1 week ago

Question

9.8 Describe leadership development and its impact

Answered: 1 week ago

Question

9.6 Explain what management development is and why it is important.

Answered: 1 week ago