Question
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and
| Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and completed in 2013. Cost and other data are presented below: |
| 2012 | 2013 | ||
| Costs incurred during the year | $ 450,000 | $1,100,000 | |
| Estimated costs to complete | 1,050,000 | 0 | |
| Billings during the year | 400,000 | 1,400,000 | |
| Cash collections during the year | 300,000 | 1,500,000 | |
| Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. |
| Required: |
| Perpare all journal entries related to the construction project in 2012 and 2013 |
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
17th Edition
0073379654, 9780073379654
