Question

In: Accounting

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.

Solutions

Expert Solution

Journal entries :-


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