Percentage of Completion Method Example (Loss)

In this session, I work a percentage of completion example with a loss scenario
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#cpaexam #intermediateaccounting #cpa

[@XanRussell]

Omg ty..I just started this on Becker. Struggling too remember this one.

[@AccountingLectures]

Most welcome. Please take a look at Becker FAR course: farhatlectures.pathwright.com/library/far-becker-supplemental-course-50601/about/

[@NS-tz3nt]

What would the journal entries be if there was a loss in the final year instead of profit ?

[@XanRussell]

I just started This. Ty hope I can understand

[@AccountingLectures]

Welcome. Please take a look at my website for more resources: farhatlectures.com/

[@sandeepdodda2890]

Is CIP asset a/c? If yes, How does it get cleared once the project has been completed being balance sheet a/c?

[@richardwang1007]

I thought u need to use the total revenue minus total cost then times 46% for rev recognized and not use the total 8.5 M for revenue? Or am I wrong

[@maryogie1941]

You don't subtract the cost so it's 8.5M*.46.

[@antonmursid3505]

Antonmursid🙏🙏🙏🙏🙏✌🇸🇬🇸🇬🇸🇬🇸🇬🇸🇬✌👌🙏💝

[@suzettebantiling3809]

in year 1 ,, 8,500,000×.46=?

[@maryogie1941]

Did you get a different number than what he put in the journal entry for revenue for year 1

[@vanshikawadhwani6119]

@@maryogie1941 yes I got 3910,000

[@XanRussell]

How you get 752000

[@AccountingLectures]

Y1 actual cost of 3,000,000 + y2 actual cost of 2,330,000 + y3 estimated remaining cost of 2,190,000 = 7,520,000. I hope this helps.

[@XanRussell]

Yes ty