BUS 320 Lecture Notes - Lecture 5: Multinational Corporation, Income Statement, Gross Profit

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Dennis Chung

Document Summary

In 20x1, western builders inc. agreed to construct a building for a large multinational corporation at a total contract price of ,000,000. The contract covers a four-year period and the building is expected to be completed in 20x4. Information relating to the costs and billings for this contract is as follows: Costs incurred to date (year end) ,200,000 ,400,000 ,300,000 ,900,000. You have examined all the relevant factors and concluded that the outcome of the construction contract can be reliably estimated. Western builders inc. is listed on the tsx and has a. Required: (i) prepare the journal entries, the partial balance sheet, and the partial income statement for. Western builders inc. for each of the four years 20x1, 20x2, 20x3 and 20x4 to show the effects of the above construction contract.