D Oklahoma ABLE Online E Kaplan University I KU ( X (E) Unit 2 Lab 302 Assignm ×

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D Oklahoma ABLE Online E Kaplan University I KU ( X (E) Unit 2 Lab 302 Assignm × y ví wileyPLUS secure ! https://edugen.wileyplus.com/edugen/lti/main.uni (236 unread) _ alyssator Kleso, Intermedlate Accounting, 16e +1 CALCULATOR PRINTER VERSIONBACK NEXT ASSIGNMENT RESOURCESYour answer is partially correct. Try agaln. Unit 2 Lab 302 Kingbird Construction Company began work on a $418,900 construction contract in 2017. During 2017, Kingbird incurred costs of $279,500, billed its customer for $216,600, and collected $176,600. At December 31, 2017, the estimated additional costs to complete the project total $162,800 Prepare Kingbird's journal entry to record profit or loss, if any, using (a) the percentage-or-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) Construction Expenses Objective Revenue from Long-Term Contracts Construction in Process (b) Loss from Long-Term Contracts Construction in Process Click if you would like to show work for this question: OpenShow work SHoW LIST OF ACCOUNTS LINK TO Question Attempts: 1 of 5 used SAVE rOR LATER SUBMIT ANSWER

Explanation / Answer

a)

Percentage completion = Costs to date / Estimated total costs

Percentage completion = 279500 / (279500+162800) = 279500/442300 = 63.192%

Revenue recognized = % of completion x Total estimated revenue

Revenue recognized = 63.192% * 418900 = 264711

Income recognized = Revenue recognized - Expenses incurred = 264711 - 279500 = -14789

Journal Entry:

Construction Expenses Cr 279500

Revenue from Long-Term Contracts Dr 264711

Construction in process Dr 14789

b)

Cost incurred = 279500

Billed to customer = 216600

Loss from long term contracts = Cost incurred - Billed to customer = 279500 - 216600 = 62900

Journal Entry:

Loss from Long term contracts Cr 62900

Construction in process Dr 62900

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