Applying the Financial Statement Effects Template Camden Corporation agreed to build a warehouse for a client at an agreed contract price of $1,800,000. Expected (and actual) costs for the warehouse follow: 2016, $405,000; 2017, $675,000; and 2018, $270,000. The company completed the warehouse in 2018. a. Use the financial statement effects template to record contract revenues and expenses for each year 2016 through 2018 using the costtocost method. Assume Camden does not receive payment until the contract is completed. All costs are paid in cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.
b. Prepare journal entries and t-accounts to record contract revenues and expenses for each year 2016 through 2018 using the costtocost method.
| | Account | Debit | Credit |
| 2016 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Record construction costs paid | | |
| 2016 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Accrue revenue for contract | | |
| Cost of Sales |
| 2016 | Answer | Answer | |
| | | | |
| Accounts Receivable |
| 2016 | Answer | Answer | |
| | | | |
| Revenue |
| 2016 | Answer | Answer | |
| | | | |
| | Account | Debit | Credit |
| 2017 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Record construction costs paid | | |
| 2017 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Accrue revenue for contract | | |
| Cost of Sales |
| 2017 | Answer | Answer | |
| | | | |
| Accounts Receivable |
| 2017 | Answer | Answer | |
| | | | |
| Revenue |
| 2017 | Answer | Answer | |
| | | | |
| Revenue |
| 2017 | Answer | Answer | |
| | | | |
| | Account | Debit | Credit |
| 2018 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Record construction costs paid | | |
| 2018 | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | AnswerAccounts PayableAccounts ReceivableCashCommon StockCost of SalesRetained EarningsRevenueUnearned RevenueWarehouseN/A | Answer | Answer |
| | Accrue revenue for contract | | |
| Cost of Sales |
| 2018 | Answer | Answer | |
| | | | |
| Accounts Receivable |
| 2018 | Answer | Answer | |
| | | | |
| Revenue |
| 2018 | Answer | Answer | |
| | | | |
