Russell Ltd commenced the construction of a bridge on 1July 2003.It has a fixed-price contract for total revenues of $35million.The expected completion date is 30 June 2006.The expected total cost to Russell Ltd at the beginning of the project is $29 million.The following information relates only to the construction of the bridge: Russell Ltd uses the percentage of completion method based on cost to account for its construction contracts.Assuming that 2004's entries have been made,what are the journal entries for the year ended 30June 2005 (rounded to the nearest $000)?
E) None of the given answers.

Question

Russell Ltd commenced the construction of a bridge on 1July 2003.It has a fixed-price contract for total revenues of $35million.The expected completion date is 30 June 2006.The expected total cost to Russell Ltd at the beginning of the project is $29 million.The following information relates only to the construction of the bridge:  Russell Ltd uses the percentage of completion method based on cost to account for its construction contracts.Assuming that 2004's entries have been made,what are the journal entries for the year ended 30June 2005 (rounded to the nearest $000)?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Russell Ltd commenced the construction of a bridge on 1July 2003.It has a fixed-price contract for total revenues of $35million.The expected completion date is 30 June 2006.The expected total cost to Russell Ltd at the beginning of the project is $29 million.The following information relates only to the construction of the bridge:  Russell Ltd uses the percentage of completion method based on cost to account for its construction contracts.Assuming that 2004's entries have been made,what are the journal entries for the year ended 30June 2005 (rounded to the nearest $000)?
E) None of the given answers.

Russell Ltd Commenced the Construction of a Bridge on 1July