When plаying “stоp-time,” whаt dоes аn ensemble dо?
Percentаge-оf-cоmpletiоn method. H&C Co. contrаcted to build а commercial container ship for $20,000,000. Construction began in 2021 and was completed in 2023. Data relating to the construction costs and estimates are: H&C, under the contract, will annually bill (i.e. invoice) and receive all constructions costs incurred in the current year. E.g., constructions cost for 2021 are billed and received in cash during 2021. H&C uses the percentage-of-completion method. You may continue to use the Excel spreadsheet from Essay question #1 to complete these requirements. Some information/formatting has been provided in the Excel spreadsheet. a. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Show calculations. b. Prepare all necessary journal entries for 2021 through 2023 using the percentage-of-completion method. c. Using the above journal entries (part b), describe and quantify the impact of the long-term revenue contract on the Income Statement and Balance sheet, for the year ended December 31, 2021 and as of December 31, 2021, respectively. d. Using the answers from a and b above, prepare the 2021 thru 2023 revenue recognition journal entries (only) using the completed contract method.