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Consider the following data for a project which began in 2019 by Forest Weather Construction, with a contract price of $1,600,000. Forest uses IFRS and their customer controls the building during the period of construction.

Total construction costs incurred in each year were as follows:

2019 $260,000

2020 $520,000

2021 $520,000

Billings each year were as follows:

2019 $150,000

2020 $350,000

2021 $800,000

Collections on billings each year:

2019 $100,000

2020 $200,000

2021 $1,000,000

Required 1: Using the table below, calculate the revenue to be recognized by Forest Weather Construction during 2019 and 2020. Assume that percentage of completion is measured by the ratio of costs incurred to date divided by total estimated construction costs. You only need to complete the chart for the first two of the three years.

Required 2: Using the information in your table, prepare all of the required journal entries for 2019 only.

Year(s)	2019	2020
Contract price	$1,600,000	$1,600,000
Opening balance of costs
Current period costs
Costs to date
Estimated costs to complete
Total estimated costs
% complete
Revenue to date
Prior periods revenue
Current period revenue
Gross profit

General Journal
Date	Account Titles and Explanation	Debit	Credit

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