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
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Control And Audit Of Minicomputer Systems
Authors: British Computer Society
1st Edition
0471261866, 978-0471261865
