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Clorad Corporation uses the percentage of completion method of accounting for construction contracts. Using the following information for Year 1, compute Clorad's
(a) Total estimated costs to complete,
(b) Revenue to date,
(c) Construction cost (expense) incurred for the year,
(d) Gross profit recognized.
Year 1 (of four year project):_____________________________________Construction costs incurred during the year ......... $ 174,000Estimated costs to complete the contract .......... 426,000Partial billings to customers ................ 100,000Collections from customers ................ 25,000Total contract price .................. 1,000,000
how to prepare the reversing entries from the adjusting entries as follows and tranferrer to the ledger ? advertising
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