asey Company contracted on 10/1/20 to construct a warehouse for $540,000. The project was completed in...
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Časey Company contracted on 10/1/20 to construct a warehouse for $540,000. The project was completed in 2021. Additional data follow: 2020 $ 266,600 163,400 390,000 325,000 2021 $175,000 Costs incurred to date Estimated cost to complete Billings each year Collections each year 150,000 215,000 Instructions (a) Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2020 and 2021. Percentage-of-Completion Gross Profit Completed-Contract Gross Profit 2020 2020 2021 2021 Calculations (not required): (b) Prepare the Journal and adjusting journal entries for 2020. Debit Credit Debit Credit Focus (b) Prepare the Journal and adjusting Journal entries for 2020. Debit Credit Debit Credit Debit Credit Debit Credit (c) What accounts and amounts will appear on the Balance Sheet for 2020 using the Percentage-of-Completion method. Ignore cash. Balance Sheet Assets Liabilities Current: Current: Long-term: Long-term: Časey Company contracted on 10/1/20 to construct a warehouse for $540,000. The project was completed in 2021. Additional data follow: 2020 $ 266,600 163,400 390,000 325,000 2021 $175,000 Costs incurred to date Estimated cost to complete Billings each year Collections each year 150,000 215,000 Instructions (a) Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2020 and 2021. Percentage-of-Completion Gross Profit Completed-Contract Gross Profit 2020 2020 2021 2021 Calculations (not required): (b) Prepare the Journal and adjusting journal entries for 2020. Debit Credit Debit Credit Focus (b) Prepare the Journal and adjusting Journal entries for 2020. Debit Credit Debit Credit Debit Credit Debit Credit (c) What accounts and amounts will appear on the Balance Sheet for 2020 using the Percentage-of-Completion method. Ignore cash. Balance Sheet Assets Liabilities Current: Current: Long-term: Long-term:
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Answer rating: 100% (QA)
a Percentage of Completion Gross Profit Completed Contract Gross Profit 2020 68200 2020 Nil 2021 308... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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