Question
18.A construction company was hired on a construction project to build a building for $1,800,000. The project was begun in 2015 and completed in 2016.
18.A construction company was hired on a construction project to build a building for $1,800,000. The project was begun in 2015 and completed in 2016. Cost and other data are presented below:
| 2015 | 2016 |
Costs incurred during the year | $450,000 | $1,100,000 |
Estimated costs to complete | 1,050,000 | 0 |
Billing during the year | 400,000 | 1,400,000 |
Cash collections during the year | 300,000 | 1,500,000 |
Assume that A recognizes revenue on this contract over time according to percentage of completion.
Required:
Prepare all journal entries to record costs, billings, collections, and profit recognition.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started