20x1 20x2 20x3 Journal Entries:

Contract Price 10,000,000 10,000,000 10,000,000

CIP
Cost Incurred 3,150,000 5,680,000 7,120,000
Est. Cost to Complt 3,850,000 1,420,000 -
Total Cost 7,000,000 7,100,000 7,120,000 A/R

Exp. Gross Profit 3,000,000 2,900,000 2,880,000

PTC 45% 80% 100% Cash
Accum. Gross Profit 1,350,000 2,320,000 2,880,000
Prior Gross Profit - 1,350,000 2,320,000
Current Gross Profit 1,350,000 970,000 560,000 CIP
Cost of LTCC
Cost of Revenue 3,150,000 2,530,000 1,440,000
Revenue 4,500,000 3,500,000 2,000,000

less:

or

Closing Entry:
Journal Entries: 20x1 20x2 20x3

3,150,000 2,530,000 1,440,000

Materials 3,150,000 2,530,000

4,000,000 5,000,000 1,000,000

Progress Billing 4,000,000 5,000,000

3,600,000 4,500,000 1,900,000

A/R 3,600,000 4,500,000

1,350,000 970,000 560,000

Cost of LTCC 3,150,000 2,530,000 1,440,000
Revenue 4,500,000 3,500,000

CIP 4,500,000 8,000,000 10,000,000

Progress Billing 4,000,000 9,000,000 10,000,000
Asset 500,000 CIP, net -
Liability 1,000,000 Prog. Bill, net

Closing Entry:
Progress Billing 10,000,000
CIP 10,000,000
20x3

1,440,000

1,000,000

1,900,000

2,000,000
 20x1 20x2 20x3 Journal Entries:
Construction Revenues 3,150,000 2,530,000 4,320,000 CIP
Cost incurred each year 3,150,000 2,530,000 1,440,000

Gross profit earned this year - - 2,880,000 A/R

Cash

CIP
Cost of LTCC

less:

or

Closing Entry:
Progress Billing
urnal Entries: 20x1 20x2 20x3
3,150,000 2,530,000 1,440,000
Materials 3,150,000 2,530,000 1,440,000

4,000,000 5,000,000 1,000,000

Progress Billings 4,000,000 5,000,000 1,000,000

3,600,000 4,500,000 1,900,000

A/R 3,600,000 4,500,000 1,900,000

2,880,000
3,150,000 2,530,000 1,440,000
Revenues 3,150,000 2,530,000 4,320,000

CIP 3,150,000 5,680,000 10,000,000

Progress Billings 4,000,000 9,000,000 10,000,000
Asset -
Liability 850,000 PB, net 3,320,000 PB, net

osing Entry:
ogress Billing 10,000,000
CIP 10,000,000