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Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Be advised, the template workbooks and worksheets are not protected. Overtyping any data may remove it.
Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text. You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed on the top of each page if the template requires more than one page. Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly of multiple pages. If more than one page is required by the template, manual page breaks have been set to provide consistent presentation. All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells. In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions. And information or data which may be required by the solution will be entered in cells with borders to help identify them. Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01, 2012, in the format set in the template. Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered. Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it. Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be acceptable. Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of the formatting found in the templates to meet your desires. Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel.

Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel. Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed over. Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in General Journal number six." The print area is defined to fit onto 8 1/2" 11" sheets in portrait or landscape mode as required. Margins are generally set to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to reformat the margins through Page Setup. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes." When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative value if both cells E10 and E11 contain positive values. Microsoft Office and Microsoft Excel are products of, and copyrighted by, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E18-7 (Sales Recorded Both Gross and Net) On June 3, Hunt Company sold to Ann Mount merchandise having a sales price of with terms of 2/10, n/60, f.o.b. shipping $8,000 , terms n/30, was received by Mount on June 8 from point. An invoice totaling $120 the Olympic Transport Service for the freight cost. Upon receipt of the goods, June 5, Mount notified Hunt Company that merchandise costing contained flaws that rendered it worthless. $600 The same day, Hunt Company issued a credit memo covering the worthless merchandise and asked that it be returned at company expense. The freight on the returned merchandise was $24 paid by Hunt Company on June 7. On June 12, the company received a check for the balance due from Mount. Instructions: (a)(1) Prepare journal entries on Hunt Company books to record all the events noted above under the sales and receivables are entered at gross selling price concept. Jun 3 Accounts ReceivableAnn Mount Sales Sales Returns and Allowances Accounts ReceivableAnn Mount Transportation-Out Cash Cash [($8,000 - $600) (100% - 2%)] Sales Discounts [($8,000 - $600) 2%] Accounts ReceivableAnn Mount ($8,000 - $600) 8,000 8,000 600 600 24 24 7,252 148 7,400

Jun 5

Jun 7

Jun 12

(a)(2) Prepare journal entries on Hunt Company books to record all the events noted above under the sales and receivables are entered net of cash discounts concept. Jun 3 Accounts ReceivableAnn Mount Sales [$8,000 (100% - 2%)] Sales Returns and Allowances Accounts ReceivableAnn Mount Transportation-Out Cash Cash ($7,840 - $588) Accounts ReceivableAnn Mount 7,840 7,840 588 588 24 24 7,252 7,252

Jun 5

Jun 7

Jun 12

(b) Prepare the journal entry under basis 2, assuming that Ann Mount did not remit payment until August 5. Cash Aug 5 7,400 Accounts ReceivableAnn Mount Sales Discounts Forfeited ($7,400 2%)

7,252 148

153010941.xlsx.ms_office, Exercise 18-7 Solution, Page 3 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E18-7 (Sales Recorded Both Gross and Net) On June 3, Hunt Company sold to Ann Mount merchandise having a sales price of with terms of 2/10, n/60, f.o.b. shipping $8,000 , terms n/30, was received by Mount on June 8 from point. An invoice totaling $120 the Olympic Transport Service for the freight cost. Upon receipt of the goods, June 5, Mount notified Hunt Company that merchandise costing contained flaws that rendered it worthless. $600 The same day, Hunt Company issued a credit memo covering the worthless merchandise and asked that it be returned at company expense. The freight on the returned merchandise was $24 paid by Hunt Company on June 7. On June 12, the company received a check for the balance due from Mount. Instructions: (a)(1) Prepare journal entries on Hunt Company books to record all the events noted above under the sales and receivables are entered at gross selling price concept. Jun 3 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount Amount

Jun 5

Jun 7

Jun 12

(a)(2) Prepare journal entries on Hunt Company books to record all the events noted above under the sales and receivables are entered net of cash discounts concept. Jun 3 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount

Jun 5

Jun 7

Jun 12

(b) Prepare the journal entry under basis 2, assuming that Ann Mount did not remit payment until August 5. Account Title Aug 5 Amount Account Title Amount Account Title Amount

153010941.xlsx.ms_office, Exercise 18-7, Page 4 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E18-14 (Gross Profit on Uncompleted Contract) On April 1, 2012, Dougherty Inc. entered into a costplus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, Dougherty estimated that it would take 2 years to complete the project at a cost of $2,000,000 The fixed fee stipulated in the contract is $450,000 Dougherty appropriately accounts for this contract under the percentage-of-completion method. During 2012, Dougherty incurred costs of related to the project. The estimated cost at December 31, 2012, to complete the $800,000 Altom was billed contract is $1,200,000 $600,000 under the contract. Instructions: Prepare a schedule to compute the amount of gross profit to be recognized by Dougherty under the contract for the year ended December 31, 2012. Show supporting computations in good form. DOUGHERTY INC. Computation of Gross Profit to Be Recognized on Uncompleted Contract For The Year Ended December 31, 2012 Total contract price Estimated contract cost at completion ($800,000 + $1,200,000) Fixed fee Total Total estimated cost Gross profit Percentage of completion ($800,000 / $2,000,000) Gross profit to be recognized ($450,000 40%)

$2,000,000 450,000 $2,450,000 $2,000,000 450,000 40% $180,000

153010941.xlsx.ms_office, Exercise 18-14 Solution, Page 5 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E18-14 (Gross Profit on Uncompleted Contract) On April 1, 2012, Dougherty Inc. entered into a costplus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, Dougherty estimated that it would take 2 years to complete the project at a cost of $2,000,000 The fixed fee stipulated in the contract is $450,000 Dougherty appropriately accounts for this contract under the percentage-of-completion method. During 2012, Dougherty incurred costs of related to the project. The estimated cost at December 31, 2012, to complete the $800,000 Altom was billed contract is $1,200,000 $600,000 under the contract. Instructions: Prepare a schedule to compute the amount of gross profit to be recognized by Dougherty under the contract for the year ended December 31, 2012. Show supporting computations in good form. DOUGHERTY INC. Computation of Gross Profit to Be Recognized on Uncompleted Contract For The Year Ended December 31, 2012 Total contract price Title Title Total Total estimated cost Title Title Gross profit to be recognized Amount Amount Formula Amount Amount Formula Formula

153010941.xlsx.ms_office, Exercise 18-14, Page 6 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P18-3 (Recognition of Profit and Entries on Long-Term Contract) On March 1, 2012, Chance Company entered and will take 3 years into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 to complete. The contract price was $3,000,000 The following information pertains to the construction period. 2012 $600,000 1,400,000 1,050,000 950,000 2013 $1,560,000 520,000 2,000,000 1,950,000 2014 $2,100,000 0 3,000,000 2,850,000

Costs to date: Estimated costs to complete: Progress billing to date: Cash collected to date:

Instructions: (a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used. Gross profit recognized in: 2012 $3,000,000 $1,560,000 2,000,000 520,000 1,000,000 30% 300,000 0 $300,000 2013 = $1,560,000 / $2,080,000 = 75% $600,000 1,400,000 2013 $3,000,000 2014 $3,000,000 $2,100,000 2,080,000 920,000 75% 690,000 300,000 $390,000 2,100,000 900,000 100% 900,000 690,000 $210,000

Contract price Costs: Costs to date Estimated costs to complete Total estimated profit Percentage completed to date Total gross profit recognized Less: GP recognized in previous years Gross profit recognized in current year 2012 = $600,000 / $2,000,000 = 30%,

(b) Prepare all necessary journal entries for 2014. Construction in Process ($2,100,000 - $1,560,000) Materials, Cash, Payables, etc. Accounts Receivable ($3,000,000 - $2,000,000) Billings on Construction in Process Cash ($2,850,000 $1,950,000) Accounts Receivable Construction Expenses ($2,100,000 - $1,560,000) Construction in Process Revenue from Long-term Contracts [$3,000,000 (100% - 75%)] Billings on Construction in Process Construction in Process 540,000 540,000 1,000,000 1,000,000 900,000 900,000 540,000 210,000 750,000 3,000,000 3,000,000

(c) Prepare a partial balance sheet for December 31, 2013, showing the balances in the receivables and inventory accounts. CHANCE COMPANY Balance Sheet (Partial) December 31, 2013 Current assets: Accounts receivable ($2,000,000 - $1,950,000) Inventories Construction in process ($1,560,000 + $690,000) Less: Billings Costs and recognized gross profit in excess of billings $50,000 $2,250,000 2,000,000 $250,000

153010941.xlsx.ms_office, Problem 18-3 Solution, Page 7 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P18-3 (Recognition of Profit and Entries on Long-Term Contract) On March 1, 2012, Chance Company entered and will take 3 years into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 to complete. The contract price was $3,000,000 The following information pertains to the construction period. 2012 $600,000 1,400,000 1,050,000 950,000 2013 $1,560,000 520,000 2,000,000 1,950,000 2014 $2,100,000 0 3,000,000 2,850,000

Costs to date: Estimated costs to complete: Progress billing to date: Cash collected to date:

Instructions: (a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used. Gross profit recognized in: 2012 Contract price Costs: Costs to date Estimated costs to complete Total estimated profit Percentage completed to date Total gross profit recognized Less: GP recognized in previous years Gross profit recognized in current year Amount Amount Amount Amount Amount 2013 Amount Amount Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula 2014 Amount

Formula Formula Formula Formula Amount Formula

(b) Prepare all necessary journal entries for 2014. Account Title Account Title Accounts Receivable Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

(c) Prepare a partial balance sheet for December 31, 2013, showing the balances in the receivables and inventory accounts. CHANCE COMPANY Balance Sheet (Partial) December 31, 2013 Current assets: Title Inventories Title Less: Title Costs and recognized gross profit in excess of billings Amount Amount Amount Formula

153010941.xlsx.ms_office, Problem 18-3, Page 8 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P18-5 (Completed-Contract and Percentage-of-Completion with Interim Loss) Reynolds Custom Builders (RCB) was established in 1987 by Avery Conway and initially built high-quality customized homes under contract with specific buyers. In the 1990s, Conways two sons joined the company and expanded RCBs activities into the high-rise apartment and industrial plant markets. Upon the retirement of RCBs long-time financial manager, Conways sons recently hired Ed Borke as controller for RCB. Borke, a former college friend of Conways sons, has been associated with a public accounting firm for the last 6 years. Upon reviewing RCBs accounting practices, Borke observed that RCB followed the completed-contract method of revenue recognition, a carryover from the years when individual home building was the majority of RCBs operations. Several years ago, the predominant portion of RCBs activities shifted to the high-rise and industrial building areas. From land acquisition to the completion of construction, most building contracts cover several years. Under the circumstances, Borke believes that RCB should follow the percentage-of-completion method of accounting. From a typical building contract, Borke developed the following data. BLUESTEM TRACTOR PLANT Contract price $8,000,000 2012 2013 2014 Estimated costs $1,600,000 $2,880,000 $1,920,000 Progress billings 1,000,000 2,500,000 4,500,000 Cash collections 800,000 2,300,000 4,900,000 Instructions: (a) Explain the difference between completed-contract revenue recognition and percentageof-completion revenue recognition. The completed-contract method of revenue recognition recognizes income only upon completion of a project or shipment of a product. All associated costs are expensed at the point of sale, and there are no interim charges or credits to income. Completed-contract revenue recognition is used for long-term projects when estimates of revenue and costs are not reliable. The percentage-of-completion method of revenue recognition recognizes income and associated costs in each accounting period based upon progress. This method is preferred for long-term projects when estimates of revenues and costs are reasonably dependable. Under the percentage-of-completion method, the current status of uncompleted contracts is reflected on the financial statements.

(b) Using the data provided for the Bluestem Tractor Plant and assuming the percentage-of-completion method of revenue recognition is used, calculate RCBs revenue and gross profit for 2012, 2013, and 2014, under each of the following circumstances.

153010941.xlsx.ms_office, Problem 18-5 Solution, Page 9 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: (1) Assume that all costs are incurred, all billings to customers are and made, and all collections from Intermediate Accounting , 14th Edition by Kieso, Weygandt, Warfield
customers are received within 30 days of billing, the RCBs revenue, cost of sales, and gross profit for Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit $8,000 $1,600 $6,400 $1,600 8,000 4,480 6,400 1,600 8,000 6,400 6,400 1,600 Revenue recognition Year 2012 2013 2014 Contract Price $8,000 8,000 8,000 Percent Complete 25.00% 70.00% 100.00% Revenue Recognizable $2,000 5,600 8,000 Less Prior Year(s) $0 2,000 5,600 Current Year 2,000 3,600 2,400

Year 2012 2013 2014

Percent Complete 25.00% 70.00% 100.00%

Profit recognition Year 2012 2013 2014 Estimated Profit $1,600 1,600 1,600 Percent Complete 25.00% 70.00% 100.00% Profit Recognizable $400 1,120 1,600 Less Prior Year(s) $0 400 1,120 Current Year 400 720 480

(2) Further assume that, as a result of unforeseen local ordinances and the fact that the building site was in a wetlands area, RCB experienced cost overruns of $800,000 in 2012 to bring the site into compliance with the ordinances and to overcome wetlands barriers to construction. Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit $8,000 $2,400 $7,200 $800 8,000 5,280 7,200 800 8,000 7,200 7,200 800 Revenue recognition Year 2012 2013 2014 Contract Price $8,000 8,000 8,000 Percent Complete 33.33% 73.33% 100.00% Revenue Recognizable $2,667 5,867 8,000 Less Prior Year(s) $0 2,667 5,867 Current Year 2,667 3,200 2,133

Year 2012 2013 2014

Percent Complete 33.33% 73.33% 100.00%

153010941.xlsx.ms_office, Problem 18-5 Solution, Page 10 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Profit recognition Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
Year 2012 2013 2014 Estimated Profit $800 800 800 Percent Complete 33.33% 73.33% 100.00% Profit Recognizable $267 587 800 Less Prior Year(s) $0 267 587 Current Year 267 320 213

$800,000 for this contract incurred (3) Further assume that, in addition to the cost overruns of under part (b)2, inflationary factors over and above those anticipated in the development of the original contract cost have caused an additional cost overrun of $850,000 in 2013. It is not anticipated that any cost overruns will occur in 2014. Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit $8,000 $2,400 $7,200 $800 8,000 6,130 8,050 (50) 8,000 8,050 8,050 (50) Revenue recognition Year 2012 2013 2014 Contract Price $8,000 8,000 8,000 Percent Complete 33.33% 76.15% 100.00% Revenue Recognizable $2,667 6,092 8,000 Less Prior Year(s) $0 2,667 6,092 Current Year 2,667 3,425 1,908

Year 2012 2013 2014

Percent Complete 33.33% 76.15% 100.00%

Profit recognition Year 2012 2013 2014 Estimated Profit $800 (50) (50) Percent Complete 33.33% 100.00% 100.00% Profit Recognizable $267 (50) (50) Less Prior Year(s) $0 267 (50) Current Year 267 (317) 0

When there is a projected loss at any time, it must be recognized in full in the period in which a loss on the contract appears probable.

153010941.xlsx.ms_office, Problem 18-5 Solution, Page 11 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P18-5 (Completed-Contract and Percentage-of-Completion with Interim Loss) Reynolds Custom Builders (RCB) was established in 1987 by Avery Conway and initially built high-quality customized homes under contract with specific buyers. In the 1990s, Conways two sons joined the company and expanded RCBs activities into the high-rise apartment and industrial plant markets. Upon the retirement of RCBs long-time financial manager, Conways sons recently hired Ed Borke as controller for RCB. Borke, a former college friend of Conways sons, has been associated with a public accounting firm for the last 6 years. Upon reviewing RCBs accounting practices, Borke observed that RCB followed the completed-contract method of revenue recognition, a carryover from the years when individual home building was the majority of RCBs operations. Several years ago, the predominant portion of RCBs activities shifted to the high-rise and industrial building areas. From land acquisition to the completion of construction, most building contracts cover several years. Under the circumstances, Borke believes that RCB should follow the percentage-of-completion method of accounting. From a typical building contract, Borke developed the following data. BLUESTEM TRACTOR PLANT Contract price $8,000,000 2012 2013 2014 Estimated costs $1,600,000 $2,880,000 $1,920,000 Progress billings 1,000,000 2,500,000 4,500,000 Cash collections 800,000 2,300,000 4,900,000 Instructions: (a) Explain the difference between completed-contract revenue recognition and percentageof-completion revenue recognition. Enter text answer here as appropriate.

(b) Using the data provided for the Bluestem Tractor Plant and assuming the percentage-of-completion method of revenue recognition is used, calculate RCBs revenue and gross profit for 2012, 2013, and 2014, under each of the following circumstances.

153010941.xlsx.ms_office, Problem 18-5, Page 12 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: (1) Assume that all costs are incurred, all billings to customers are and made, and all collections from Intermediate Accounting , 14th Edition by Kieso, Weygandt, Warfield
customers are received within 30 days of billing, the RCBs revenue, cost of sales, and gross profit for Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit Amount Amount Formula Formula Amount Amount Formula Formula Amount Amount Formula Formula Revenue recognition Year 2012 2013 2014 Contract Price Amount Amount Amount Percent Complete Formula Formula Formula Revenue Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

Year 2012 2013 2014

Percent Complete Formula Formula Formula

Profit recognition Year 2012 2013 2014 Estimated Profit Amount Amount Amount Percent Complete Formula Formula Formula Profit Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

(2) Further assume that, as a result of unforeseen local ordinances and the fact that the building site was in a wetlands area, RCB experienced cost overruns of $800,000 in 2012 to bring the site into compliance with the ordinances and to overcome wetlands barriers to construction. Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit Amount Amount Amount Formula Amount Amount Amount Formula Amount Amount Amount Formula Revenue recognition Year 2012 2013 2014 Contract Price Amount Amount Amount Percent Complete Formula Formula Formula Revenue Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

Year 2012 2013 2014

Percent Complete Formula Formula Formula

153010941.xlsx.ms_office, Problem 18-5, Page 13 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Profit recognition Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
Year 2012 2013 2014 Estimated Profit Amount Amount Amount Percent Complete Formula Formula Formula Profit Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

$800,000 for this contract incurred (3) Further assume that, in addition to the cost overruns of under part (b)2, inflationary factors over and above those anticipated in the development of the original contract cost have caused an additional cost overrun of $850,000 in 2013. It is not anticipated that any cost overruns will occur in 2014. Percentage-of-Completion (Cost-to-Cost Basis) ($000 omitted) Estimated Contract Costs Estimated Gross Price to Date Total Costs Profit Amount Amount Amount Formula Amount Amount Amount Formula Amount Amount Amount Formula Revenue recognition Year 2012 2013 2014 Contract Price Amount Amount Amount Percent Complete Formula Formula Formula Revenue Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

Year 2012 2013 2014

Percent Complete Formula Formula Formula

Profit recognition Year 2012 2013 2014 Estimated Profit Amount Amount Amount Percent Complete Formula Formula Formula Profit Recognizable Formula Formula Formula Less Prior Year(s) Formula Formula Formula Current Year Formula Formula Formula

Enter text answer as appropriate.

153010941.xlsx.ms_office, Problem 18-5, Page 14 of 14, 6/20/2013, 6:59 AM