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Construct Pty Ltd uses the percentage of completion method of accounting for construction contracts. In 2011 Construct Pty Ltd entered into a contract to build a commercial building with a contract price of $4,200,000 for Kairns Ltd. The details relating to the contract are as follows:
Required:
(a) Calculate the amount of profit to be recognised by Construct Pty Ltd for the two years.
(b) Prepare the general journal entries for both years, assuming the outcome of the contract can be reliably estimated.
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astair inc. reported sales of 8000000 for the month and incurred variable expenses totaling 5600000 and fixed expenses
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