Sheds Galore entered into a $70,000 contract to build a special shed for Tools and Stuff...

Sheds Galore entered into a $70,000 contract to build a special shed for Tools and Stuff Inc. Sheds Galore has determined that the performance obligation would be settlled over time and uses the cost to cost input method to measure progress. Sheds Galore follows IFRS. Details of the construction of the shed are below:

2018 2019 2020

Total Costs Incurred 20000 45000 75000

Estimated Costs to Complete 40000 22000 0

Billings During the Year 15000 23000 32000

Collections During the Year 13000 24000 33000

Required

Prepare journal entries for 2018, 2019, and 2020 to record the transactions above and to record the revenue and profit or loss recognized for each year.

Show all your calculations and round all percentages to 1 decimal place (eg 20.1%) and all journal entries to the nearest dollar.

Expert Solution

Journal entries :-

ekkarill92 answered 2 years ago

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