1. JAWABAN ASISTENSI PERTEMUAN 8
REVENUE RECOGNITION
[FK]
SOLUTION 1
SOLUTION 2
a) Schedule to compute the profit or loss for the ended of
Percentage of Completion Method
Cost Recovery Method
2010 2011 2012
11.340.000$ 11.340.000$ 11.340.000$
3.888.000$ 6.898.500$ 9.855.000$
4.752.000$ 2.956.500$ -$
8.640.000$ 9.855.000$ 9.855.000$
2.700.000$ 1.485.000$ 1.485.000$
45% 70% 100%
Estimated cost to complete
Estimated total cost (b)
Estimated total gross profit
Contract price
Cost incurred to date (a)
% of completion (a/b)
2010 2011 2012
5.103.000$ 2.835.000$ 3.402.000$
3.888.000$ 3.010.500$ 2.956.500$
1.215.000$ (175.500)$ 445.500$
Revenue
Costs of construct
Gross profit (loss)
2010 2011 2012
3.888.000$ 3.010.500$ 4.441.500$
3.888.000$ 3.010.500$ 2.956.500$
-$ -$ 1.485.000$Gross profit (loss)
Revenue
Costs of construct
ICE (CONSIGNOR) HOTSA (CONSIGNEE)

2. JAWABAN ASISTENSI PERTEMUAN 8
REVENUE RECOGNITION
[FK]
b) The difference of :
Percentage of completion method: Companies recognize revenues and gross profits each period
besed upon the progress of the construction (the percentage of completion). The company
accumulates construction costs plus gross profit earned to date in an inventory account
(Construction in Process), and it accumulates progress billings in a contra inventory account
(Billings on Construction in Progress).
Cost recovery method: Companies recognize revenues only to the extent of cost incurred that
are expected to be recoverable. Once all costs are recognized, profit is recognized. The company
accumulates construction costs in an inventory account (Construction in Process), and it
accumulates progress billings in a contra inventory account (Billings on Construction in Progress).
c) Journal
Percentage of Completion Method
Cost Recovery Method
Dr. Cr. Dr. Cr. Dr. Cr.
Construction in Process (CIP) 3.888.000$ 3.010.500$ 2.956.500$
Various Account 3.888.000$ 3.010.500$ 2.956.500$
Account Receivables 4.320.000$ 4.725.000$ 2.295.000$
Bill on CIP 4.320.000$ 4.725.000$ 2.295.000$
Cash 2.835.000$ 3.960.000$ 4.545.000$
Account Receivables 2.835.000$ 3.960.000$ 4.545.000$
Construction Expense 3.888.000$ 3.010.500$ 2.956.500$
CIP (gross profit/loss) 1.215.000$ 175.500$ 445.500$
Revenue from LTContract 5.103.000$ 2.835.000$ 3.402.000$
Bill on CIP 11.340.000$
CIP 11.340.000$
Record Cost of Construct.
Record Progress Billing
Recognize Revenue &Gross Profit
Completion of Contract
Payment Collected
Account
2010 2011 2012
Dr. Cr. Dr. Cr. Dr. Cr.
Construction in Process (CIP) 3.888.000$ 3.010.500$ 2.956.500$
Various Account 3.888.000$ 3.010.500$ 2.956.500$
Account Receivables 4.320.000$ 4.725.000$ 2.295.000$
Bill on CIP 4.320.000$ 4.725.000$ 2.295.000$
Cash 2.835.000$ 3.960.000$ 4.545.000$
Account Receivables 2.835.000$ 3.960.000$ 4.545.000$
Construction Expense 3.888.000$ 3.010.500$ 2.956.500$
CIP (gross profit/loss) 1.485.000$
Revenue from LTContract 3.888.000$ 3.010.500$ 4.441.500$
Bill on CIP 11.340.000$
CIP 11.340.000$
Record Cost of Construct.
Record Progress Billing
Payment Collected
RecognizeRevenue&Gross Profit
Completion of Contract
Account
2010 2011 2012

3. JAWABAN ASISTENSI PERTEMUAN 8
REVENUE RECOGNITION
[FK]
d) Partial Statement of Financial Position Dec. 31:
Percentage of Completion Method
Cost Recovery Method
2010 2011 2012
5.103.000$ 3.402.000$
4.320.000$ 2.295.000$
783.000$ -$
1.485.000$ 2.250.000$ -$
4.725.000$
2.835.000$
1.107.000$
Costs in excess of billings
AccountReceivables
CurrentLiabilities
Billings
Less:CIP
Billings in excess of CIP
CurrentAssets
Inventories
CIP
Less:Billings
2010 2011 2012
4.441.500$
2.295.000$
-$
1.485.000$ 2.250.000$ -$
4.320.000$ 4.725.000$
3.888.000$ 3.010.500$
432.000$ 2.146.500$
Costsinexcessof billings
AccountReceivables
CurrentLiabilities
Billings
Less:CIP
Billingsinexcessof CIP
CurrentAssets
Inventories
CIP
Less:Billings