Answer:
1. 2021 2022 2023
revenue 2912973 3399745 2197282
costs 2170000 2670000 3970000
gross profit 742973 729745 -1772718
2a. Debit Contract account 2912973, Credit revenue 2912973
Debit Bridge in progress 2170000 credit various accounts 2170000
Debit Accounts Receivable 2670000, Billing on CIP 2670000
Debit Bank 2420000, credit Accounts receivables 2420000
2b. Debit Contract account 3399745, Credit Revenue 3399745
debit work in progress 2670000, credit Various accounts
debit Accounts receivables 2920000, Billing on CIP 2920000
Debit bank 2645000, credit accounts receivables 2645000
3a. BALANCE SHEET 2021
current assets
accounts receivables 250000
Liabilities
billing 2670000
3b. current Assets
Accounts receivables 275000
Liabilities
Billing 2920000
Explanation:
percentage of completion = cost incurred for start to date/ total estimated costs
percentation of completion
2021 2022 2023
34.23% 74.18% 100
Revenue to be recognised = total revenue * percentage completed
current period revenue = revenue to be recognise - prior revenue
