Penobscot Nuclear has a contract to build a state of the art breeder reactor in Maine. This will be the first reactor built in the U.S. in many years and the only breeder reactor in the country. The contract cost is $1 billion and is expected to take 4 years to complete.
Here are some relevant facts (all numbers in the table are in millions):
Contract price: $1,000 Million
| 2016 | 2017 | 2018 | 2019 | |
| construction cost incurred in the current year: | $100 | $300 | $400 | $180 |
| Estimated cost to complete the contract at the end of the year: | $700 |
$400 |
$450 |
$0 |
| Billing on the contract in the current year | $120 | $340 | $400 | $140 |
| Dollars collected on billings in the current year | $80 | $360 |
$320 |
$240 |
Complete the required jorunal entries for each year using the percentage-of-completion contract method. also show the relevant balance sheet and income statement presentation, and complete T-accounts for construction-in-progress and billings-on-contract accounts.
Penobscot Nuclear
Balance sheet
December 31, 2015
Cash $800
Retained Earnings $ 300
Common Stock 500
Total Equity $ 800
In: Accounting
Australian Taxation
Abby runs a printing business and leases a building for which she pays rent of $75,000 per annum. During the year ended 30 June 2020, Abby incurred the following expenses: Painting of the exterior of the building at a cost of $12,000. The original paintwork was peeling and mouldy and did not represent the kind of look Abby wanted for her business. Re-surfacing of the dirt car park with a new non-slip cement to fill in pot-holes and create a safer environment for her customers $8,000 Replace torn awning over the front door for $1,500. The replacement awning was made of the same material as the original awning. Payment of $22,000 for a commercial embroidery machine so that Abby could introduce clothing design and printing into her business. The machine was purchased on 10 February 2020 and installed on 26 February 2020. Advise Abby if the expenses would be deductible with reference to relevant statute or other supporting documents.
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