| P3IP | You are a fresh accounting graduate. You have landed a job with a big 3 accounting firm. |
| | The first day at your job, your manager approaches you: “Hi Bill! Welcome aboard. Hope you like your new cubicle. |
| | Have you met everyone? By the way, you will be working with me from tomorrow on Long House Company. |
| | This is an important client. They have sent me some information on their projects. |
| | Can you provide a report that answers all of the questions listed below? By the way I need it by tomorrow morning at 8 a.m.!" |
| | Project | Total Contract Price | Billings Through 12/31/12 | Cash Collections Through 12/31/12 | Contract Costs Incurred Through 12/31/12 | Estimated Additional Costs to Complete |
| | A | $200,000 | $100,000 | $80,000 | $120,000 | $90,000 |
| | B | 250,000 | 50,000 | 45,000 | 40,000 | 180,000 |
| | C | 180,000 | 180,000 | 150,000 | 120,000 | 0 |
| | D | 100,000 | 10,000 | 5,000 | 80,000 | 20,000 |
| | E | 140,000 | 120,000 | 110,000 | 100,000 | 10,000 |
| | | 870,000 | 460,000 | 390,000 | 460,000 | 300,000 |
| | Fill in yellow cells below with the appropriate amounts |
| | I – Schedule of gross profit or loss |
| | | A | B | C | D | E |
| | A |
| | B |
| | C |
| | D |
| | E |
| | A (Not applicable because it is a loss) |
| | B |
| | C |
| | D |
| | E |
| | Gross profit (loss) |
| | Project A |
| | Construction in process |
| | | Materials |
| | Accounts receivable |
| | | Billings |
| | Cash |
| | | Accounts receivable |
| | Construction expenses |
| | | Revenue from long-term contracts |
| | | Construction in process loss |
| | Project B |
| | Construction in process |
| | | Materials |
| | Accounts receivable |
| | | Billings |
| | Cash |
| | | Accounts receivable |
| | Construction in process gross profit |
| | Construction expenses |
| | | Revenue from long-term contracts |
momf4g
phase_3_ip.xlsx
