Question marks
Sunshine Construction Company Limited engaged in a construction project. The project was
begun in and completed in with contract price of $ Cost and other data
relating to the project was presented below:
Assume that the Company uses the PERCENTAGEOFCOMPLETION METHOD for
revenue recognition. The Company's financial yearend is December.
Required: Answers should be rounded to two decimal places if necessary
a Calculate the gross profits losses recognized for the financial years and
respectively. Show your workings clearly
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b Prepare the journal entries necessary to record the above information on the Company's
books during
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c Prepare an extracted Statement of Financial Position for showing items related to
this longterm construction project.
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d Compute the gross profits losses recognized for the financial years and
assuming the company uses the COST RECOVERY METHOD to account for the
longterm contract.
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