On January 1, 2012, the Kobe Construction Company entered into a 3-year contract to build a dam.

Question:

On January 1, 2012, the Kobe Construction Company entered into a 3-year contract to build a dam. The original contract price was $21,000,000 and the estimated cost was $19,400,000. The following cost data relate to the construction period.

Prepare the required journal entries for the three years of the contract, assuming Kobe uses the completed-contract method.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

See More Books

Question Posted: Nov 28, 2016 10:26 AM

See More Questions

On January 1, 2010, the Kobe Construction Company entered into a 3-year contract to build a dam. The original contract price was $21,000,000 and the estimated cost was $19,400,000. The following cost...
On January 1, 2014, the Kobe Construction Company entered into a three-year contract to build a dam. The original contract price was $21,000,000 and the estimated cost was $19,400,000. The following...
On February 1, 2011, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2011, costs of $2,000,000 were incurred with...
discuss the benefits and challenges of the employee job performance evaluation process as it relates to the ratings of an individual. For example, if an employer uses a standard Likert Scale (1...
Eden Electrical, Ltd., owned twenty-five appliance stores throughout Israel, at least some of which sold refrigerators made by Amana Co.Eden bought the appliances from Amanas Israeli distributor, Pan...
Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end work sheet is provided on the next page. Using this information, prepare adjusting entries, financial statements, and closing...
Not uncommonly, the Gantt chart is deceptive in its apparent simplicity. Briefly explain. LO6
Research auditing professional standards and list the requirements related to developing an expectation and conducting analytical procedures when those procedures are intended to provide substantive...
nouncements odules ssignments ades cademic Policies bom allott Discov 12 [ Which is NOT a reason a company would issue stocks? O They raise money without incurring debt. O They need to make interest...
Kampa Company and Arbor Company are similar firms that operate in the same industry. Arbor began operations in 2001 and Kampa in 1995. In 2006, both companies pay 7% interest on their debt to...
Southern California Builders Inc. entered into a contract to construct an office building and plaza at a contract price of $30,000,000. Income is to be reported using the percentage-of-completion...
The Build-It Construction Company enters into a contract on January 1, 2013, to construct a 20-story office building for $42,000,000. During the construction period, many change orders are made to...
Figure shows a ball with mass m = 0.341 kg attached to the end of a thin rod with length L = 0.452 m and negligible mass. The other end of the rod is pivoted so that the ball can move in a vertical...
460 V rms 3 phase full wave controlled rectifier feeds an inductive load. The supply voltage has a frequency of 50 Hz. If thyristors are considered ideal; a) Draw the voltage on the load when a = 25....
The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Garcon Company Pepper Company Finished goods inventory, beginning $14,000 $17,950 Work in process...
On September 22, 2024, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records...
A wound DC motor is connected in both a shunt and a series configuration. Assume generic resistance and inductance parameters Ra, Rf, La, Lf, let the field magnetization constant be kf and the...
Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS...
For elements in Groups 4A7A of the periodic table, give the number of bonds an element is expected to form (in an uncharged molecule) if it obeys the octet rule. Group 4A: Group 5A: Group 6A: Group...
When the Department of Homeland Security created a color-coded system to prepare government officials and the public against terrorist attacks, what did it do right and what did it do wrong?
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
Practice Problem 1 The stockholders equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,400 shares authorized) $264,000 Common Stock...
JVCU Which of the following is considered cash for financial reporting purposes? 1 JVCU Which of the following is considered cash for financial reporting purposes? 1
Required information The Foundational 15 [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, L08-10) (The following information applies to the questions displayed below.) Morganton Company makes one product...

On January 1, 2012, the Kobe Construction Company entered into a 3-year contract to build a dam.

Question:

Cost Incurred Estimated Cost to Complete Cash Collected Year Billings $7,200,000 $12,500,000 $7,200,000 $6,500,000 6,700,000 7,800,000 6,500,000 7,900,000 0 7,300,000 8,100,000

Step by Step Answer:

2012 Construction in Progress 7200000 Materials Labor Cash etc 7200000 Accounts Receivable 7200000 P...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions