Question
Tilly Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and
Tilly Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and completed in 2013. Cost and other data are presented below.
| 2012 | 2013 | |
| Costs Incurred During The Year | $450,000 | $1,100,000 |
| Estimated Costs To Complete | $1,050,000 | $0 |
| Bilings During The Year | $400,000 | $1,400,00 |
| Cash Collections During The Year | $300,000 | $1,500,000 |
Assume that Tilly reports under IFRS and uses the cost recovery method for revenue recognition.
Required:
A. Compute the amount of gross profit recognized during 2012 and 2013
B. Prepare the appropriate journal entries to record revenue and gross profit during 2012 and 2013
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Local Union Financial Records A Guide For Local Union Trustees
Authors: John Lund
1st Edition
0875461948, 978-0875461946
