Bigelow Contractors signed a contract to construct a

storage facility #3030

Bigelow Contractors signed a contract to construct a storage facility for RGN Manufacturing, Inc.
The fixed- fee contract specifies that the facility is to be completed in three years. Bigelow uses
the percentage- of- completion method (cost- to- cost approach) to account for its construction
transactions. Information related to this contract is summarized in the table below.Required a.
Compute the percentage completed for each year. b. Compute the gross profit and revenue to
be recognized each year of the contract.c. Prepare the journal entries required for each year of
the contract. d. Prepare the t- accounts for Construction in Progress, Billings on Construction in
Progress, and Accounts Receivable. e. Determine the net asset (liability) for each year of the
contract on December 31.View Solution:
Bigelow Contractors signed a contract to construct a storage facility

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