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USE THE FOLLOWING INFORMATION FOR #10 - 14: The following information is available for TRB Corporation, a commercial builder HINT: Pay attention to dates Gross

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USE THE FOLLOWING INFORMATION FOR #10 - 14: The following information is available for TRB Corporation, a commercial builder HINT: Pay attention to dates Gross contract price of building Estimated total costs at the beginning of contract Contract start date Completion date In 20x6 total costs were revised to S 85,000,000 43.000.000 1/1/XS 8/15/X7 $ 52,000,000 Costs to date Estimated costs to complete Progress billings during the year 20x5 $19,000,000 $ 24,000,000 $23,000,000 $21,450,000 20x6 $36,000,000 $ 16,000,000 $30,000,000 $22,600,800 20x7 $52,000,000 $ S 32,000,000 $ 40,949,200 10.) What is the estimated total gross profit on the contract in 20x7? Write the correct answer on the cover sheet. Page 6 of 11 11.) The Journal entry required in 20x5 to record the costs of construction is as follows: A.) Construction in Process (Inventory) 19,000,000 Cash or Payables 19,000,000 B.) Construction in Process (Inventory) 43,000,000 Cash or Payables 43,000,000 C.) Construction Expense (expense) 19,000,000 Cash or Payables 19,000,000 D.) Construction Expense (expense) 52,000,000 Cash or Payables 52,000,000 12.) The journal entry required in 20x6 to record the progress billings AND cash collections during the year are as follow A.) Accounts Receivable (asset) 30,000,000 Billings on Construction in Process (inventory) 30,000,000 AND Cash (asset) 19,350,800 Accounts Receivable (contra-asset) 19,350,800 B.) Cash (asset) 30,000,000 Billings on Construction in Process (contra-inventory) 30,000,000 AND Accounts Receivable (asset) 33,749,200 Cash (asset) 33,749,200 C.) Accounts Receivable (asset) 53,000,000 Billings on Construction in Process (contra-inventory) 53,000,000 AND No journal entry is required. D.) Accounts Receivable (asset) 30,000,000 Billings on Construction in Process (contra-inventory) 30,000,000 AND Cash (asset) 22,600,800 Accounts Receivable (asset) 22,600,800 Page 7 of 11 13.) What amount of REVENUE should be recognized in 20357 (Carry your percentages out 4 to 6 places). Write your answer on the cover sheet 14.) What amount of GROSS PROFIT should be recognized in 20X6? Write the correct amount on the cover sheet Pas of 11

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