Bywater Construction Contracted to Build a Ship Over a Two

question 10

Essay

Bywater Construction contracted to build a ship over a two year period. The contract price was $21,000,000 with an estimate total cost of $18,400,000. The following cost data relate to the construction period.

Prepare the necessary journal entries for 2011, 2012, and 2013 assuming Bywater uses the percentage-of-completion method.

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Definitions:

Upward Communication

The process of information flow from the lower levels of a hierarchy to the higher levels, primarily involving feedback, suggestions, complaints, or reports from employees to management.

Downward Communication

The flow of information and messages from higher levels of an organization's hierarchy to the lower levels.

Employer Branding

The process of promoting a company or organization as an employer of choice to a desired target group, to attract, recruit, and retain employees.

Distinctive Features

Characteristics that differentiate an object, concept, or phenomenon from others, making it uniquely identifiable.