Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Reds Construction Co. signed a $2,550,000 contract to construct a factory annex for Pink Tree Industries. The project will begin in 2019 and be

image text in transcribed
1. Reds Construction Co. signed a $2,550,000 contract to construct a factory annex for Pink Tree Industries. The project will begin in 2019 and be completed in 2021. Below is a summary of events for 2019, 2020, and 2021: 2019 2020 2021 Costs incurred during the year $ 640,000 $1,075,000 $530,000 Estimated costs to complete 1,440,000 580,500 0 Billings during the year 850,000 1,100,000 1,000,000 Cash collections during the year 720,000 1,000,000 1,230,000 Prepare the appropriate journal entries for 2019, 2020, and 2021 to record costs, billings, collections, and any profit (loss) recognition created from the information provided above. Show your work for calculating each years' percentage of completion and gross profit (loss). Round your percentages to the nearest whole percent. You do not need a closing entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt

7th Edition

0134421825, 9780134421827

More Books

Students also viewed these Accounting questions

Question

Define job pricing. What is the purpose of job pricing?

Answered: 1 week ago

Question

What are some companywide pay plans? Briefly discuss each.

Answered: 1 week ago