In 2009, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions):
Acc Rec $37.5M
Actual Construction Cost incurred in 2009 $135M
Cash Collected on projected during 2009 $105M
Contruction in Progress $207M
Estimatd % of completion during 2009 60%
What is the fixed contract price for CCC's project?
Sahara Desert Homes (SDH) reports under IFRS, and constructed a new subdivision during 2008 and 2009 under contract with Cactus Development Co. Relevant data are summarized below:
Contract Amount $3,000,000
Cost 2008 1,200,000
2009 600,000
Gross Profit 2008 800,000
20009 400,000
Contract 2008 1,5000,000
Billing 2009 1,500,000
SDH uses the cost recovery method under IFRS to recognize revenue.
What would be the journal entry made in 2008 to record revenue?