| 1- Using the data provided below you are to input formulas in the area designated below to calculate: % complete, revenue to be recognized in each year, and gross profit to be recognized in each year.please note formulas used in excel to calculate. |
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| Hint: I suggest you use formulas with an IF function regarding the gross profit section of your speadsheet because your spreadsheet should be able to calculate correct answers whether a contract generates a profit or loss. |
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| 2- Using the data given and the solutions your spreadsheet generated print out the JE Document posted and use it to prepare all journal entries for 2013. Your journal entries must be handwritten and turned in at the beginning of class the day this assignment is due. |
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| Data: March 2,2014 |
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| Contract price |
1,200,000 |
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2012 |
2013 |
2014 |
| Costs incurred to date** |
$280,000 |
$600,000 |
$785,000 |
| Estimated costs yet to be incurred |
520,000 |
200,000 |
0 |
| Customer billings to date** |
250,000 |
500,000 |
1,200,000 |
| Collections of billings to date** |
120,000 |
320,000 |
1,040,000 |
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| **Hint: You have to figure out the actual cost, billings, and collections for each respective year. The reason why is because the information presented is "to date" not "Costs expended this year" as in the handouts and some of your assigned exercises/problems. |
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| Use the format provided below to input formulas for each respective year. |
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2012 |
2013 |
2014 |
| Costs expended to date |
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| Estimated total costs |
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| % complete |
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| Contract price |
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| % complete |
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| Revenue recognized to date |
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| Revenue recognized prior |
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| Revenue recognized current |
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| Estimated total gross profit |
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| % complete |
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| Gross profit recognized to date |
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| Gross profit recognized prior |
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| Gross profit recognized current |
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